One industry spokesperson has predicted there are more financial problems among holiday companies to come this year.
Britain could see the collapse of more holiday companies before the end of the year, it has been suggested.
Lesley Shepherd, manager of corporate communications at the European Regions Airline Association (ERA), said: "I think we will see more bankruptcies coming to the end of this year until recovery starts but when that happens, who knows?"
She added that airlines will also suffer if passenger numbers continue to decrease as there will be less cash flow and revenue.
Ms Shepherd also said that if demand does drop for flights, then prices are likely to fall.
Lloyds TSB noted at the end of August that 5.2 million people in the UK (ten per cent) have travelled abroad in the past without taking out a
holiday insurance policy.
Cancellation of flights and travel delays were among the top five most common holiday incidents in 2008,
travel insurance company InsureandGo reported.
Other instances included medical problems and lost or stolen money or luggage.
Holiday insurance from
Direct Travel Insurance covers a wide range of activities and may be a wise purchase for those planning on taking an adventurous break.
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