Travellers seeking financial security of package holidays need travel insurance

Sales of package holidays have risen 17% this year as travellers look for the financial security offered by an all-inclusive deal. But those anxious about their holiday cash should also remember to buy travel insurance.

Lastminute.com said that while sales for packages were up this year, there were fewer people planning to book flights and hotels independently.

Its research suggests the return to the package holiday is due largely to the fact that people are wary of booking flights separately following the high-profile collapses of a number of airlines, including XL and Zoom, which left thousands of passengers out of pocket.

As yet, there is no financial protection for passengers who book flights direct with an airline. Customers who book flights as part of a package, however, are covered under the government-run ATOL scheme.

Customers buying package holidays still need to buy travel insurance, however, which will also cover for medical care overseas, loss and theft of baggage, delays and cancellations.

Passengers who want to book flights direct with an airline should do so with a credit ? not debit or charge ? card or take out Scheduled Airline Failure Insurance, which is available to insurewithease customers for a small additional charge.

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