13 October 2008

Grand UK drops free insurance

Over-55s operator Grand UK Holidays has ââ¬Åâœreluctantlyââ¬~ dropped a free insurance offer on domestic trips after 25 years.

The company said it had been forced into the change in its 2009 programme due to changes in FSA regulations controlling how travel insurance can be sold by travel firms from January 1.

In place of free insurance, customers will be offered a ââ¬Ëœprice-back insuranceââ¬â¢ offer should they decide to take Grand UKââ¬â¢s own insurance for a coach holiday in England, Scotland or Wales. They will receive a Ã&#pound;10 holiday voucher which they can use towards their next holiday, subject to conditions.

Sales director Harold Burke said: ââ¬ÅâœThis has upset the travel industry and is not necessarily better for the consumer.

ââ¬ÅâœIt is making the whole issue more difficult and more expensive to operate, which will ultimately have an impact on the consumer.ââ¬~

The 2009 summer programme, which marks the operatorââ¬â¢s 25th anniversary, features 42 new itineraries, with holidays by air up about 40%.

ââ¬ÅâœDespite the credit crunch, more of our customers are taking holidays by air, as well as river and ocean cruises,ââ¬~ Burke said.

ââ¬ÅâœWe are not seeing cutbacks or people trading down at this point in time. There may be an impact in the future but we are not seeing evidence of it so far.ââ¬~

The brochure sees the introduction of Fred. Olsen Cruise Lines alongside 12 itineraries on the ship Marco Polo. Two new river cruises have also been added.

Overall prices start at Ã&#pound;159 for a four-day Magical Mystery Tour on a half-board basis in the UK, including coach transport and two sight-seeing excursions.

by Phil Davies

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