Travellers 'should not worry when booking a holiday'
People thinking about travelling should not be worried about more holiday companies failing - as long as they are adequately covered - the Travel Association (Abta) has said.
Frances Tuke, spokesperson for Abta, said companies collapse regardless of the state of the economy - although the recession will leave firms more exposed.
She added she would not discount more companies going under this year and in the next few years, however, she advised people not to be too concerned.
"It's very important for travellers to think about financial protection," she explained.
"There are regimes in place to protect [consumers], so it just requires a little bit of forward thinking and forward planning."
It is thought that the collapse in April of holiday company Freedom Direct affected around 9,000 bookings, but Ms Tuke claimed such large failures tend to happen around once a decade.
September 2008 also saw XL Holidays fall into administration.
Cheap holiday insurance from Direct Travel Insurance could be one way to keep total holiday expenditure down.
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