Travel News > May 2012 > Greek crisis: Could your holiday be affected and how travel insurance can help

Greek crisis: Could your holiday be affected and how travel insurance can help


Those of you who have a holiday booked to Greece this summer might understandably be concerned about how the current political and economic uncertainty might affect it. We examine how your holiday could be affected and how travel insurance can help.

Insolvency of a hotel or other holiday supplier - travel insurance can help!

Passenger numbers to Greece were already predicted to be significantly down this year, even before the latest uncertainty after the election result. The failure to create a coalition government and the announcement of further elections next month is likely to put even more travellers off choosing Greece as their holiday destination this summer.

This drop in passenger numbers could mean an increased risk of small hotels or other holiday suppliers becoming insolvent and unable to provide the service you have booked with them. Earlier this year the Sunday Times reported that as many as 1000 hotels in Greece are expected to close or be put up for sales in the coming months.

If you have booked a package holiday with an ATOL bonded tour operator, there is no need to worry, your tour operator has a duty to look after you. They have an obligation to provide you with a suitable alternative, or provide a full refund. You may not get the holiday you originally planned, but you should get an alternative of a similar standard or a full refund.

Travellers who book their holiday independently, for instance direct with a hotel and/or an airline, would not have this kind of financial protection and should make sure that their travel insurance includes insolvency cover.

Insolvency cover often known as Scheduled Airline Failure provides additional travel insurance protection, allowing you to make a claim to recoup costs in the event that your pre-booked airline, accommodation or other holiday supplier becomes insolvent.

This would allow you to claim back the money you paid for your original hotel, enabling you to book an alternative and continue with your holiday as planned.

The good news is that all travel insurance policies from include Scheduled Airline Failure (Insolvency Cover) as standard. Remember, this covers the insolvency of hotels, accommodation and other holiday supplier, not just airlines.

Increased risk of strikes in Greece - Travel insurance can help!

With the situation in Greece remaining uncertain and no economic improvement in sight at the moment, there could be an increased risk of strikes impacting flights.

Travel insurance from provides cover for travel delay due to strikes, so long as your holiday and your travel insurance were booked before dates of a strike were announced.

To make sure you get the full benefit of the travel delay cover in your travel insurance you should buy your policy as soon as you have booked your holiday - it won't cost you any more than if you bought it at the last minute, and it means that you are much more likely to be covered in the event of a strike being announced.

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