02 February 2009

Consumers' financial protection ignorance revealed

Almost three quarters of people do not know whether they would have financial protection if their travel company failed, according to a new study.

A survey by Advantage Travel Centres discovered that 72.3% are not certain which elements of their holiday, or under what circumstances, they would be protected if their travel provider failed.

This further reinforces the industry’s claim that greater clarity, through legislation change, is needed on the issue, the independent agency consortium said.

The findings also show that more than half of the population would consider using a travel agent to book their 2009 holiday (50.5%, up from 47.3% in the last three years), suggesting financial protection and professional advice are ‘must haves’ in the current recession, Advantage said.

Other results from Advantage’s ‘Love Travel, Love Your Travel Agent’ survey include:

*When it comes to holiday purchases over £1,000 in value, travellers say they far prefer the peace of mind they get from talking through their booking with a travel agent (45.9%), compared to making the purchase online (26.1%).

*Better knowledge of destinations (32.9%), financial protection (26.4%), improved service (17.8%) and cheaper prices (13.8%) were all listed as reasons to choose a travel agent rather than making a web-based booking.

Chief executive John McEwan said: "Our survey results demonstrate how the issue of trust is becoming increasingly important where holiday bookings are concerned, as well as revealing, for the first time, how the UK’s confusing consumer protection rules for the travel industry leave most people unsure about whether their money is safe should their holiday provider go bust."

McEwan added: "Right now, people across the country will be thinking about escaping the economic gloom and choosing their annual holiday. And in the current climate, nobody wants to make an expensive mistake."