Thomas Cook has problems but will carry on
Wednesday, December 21st, 2011
A recent announcement by Thomas Cook has said that they are going to close around 200 stores in the country. This has left many people wondering if it is still safe to book a holiday with a travel agent.
It is well known that the company have recently been having some financial difficulties and the Chief Executive of the group, Sam Weihagen has said, “We are addressing issues of underperformance in business and we appreciate how supportive customers have been. We assure them that booking with Thomas Cook is still a safe option and our holidays will not be affected our refinancing.”
Thomas Cook is also covered by the Air Travel Organisers Licensing scheme which means that any holidays that are cancelled because of the companies failure will be protected. This essentially means that if you are trapped abroad because the company goes broke you will still be able to take your flight home. Also, if you have booked a holiday and the company goes insolvent then you will be to get all of your money back.
People who’ve booked a holiday independently will not be covered by the scheme and they will have to pay more in order to get home. Many people have the assumption that their travel insurance policy will cover the loss they incur but the most basic policies, which most people go for, generally do not cover this.
The Association of British Insurers has recently commented, “Most travel policies don’t cover the issue when a company goes insolvent. They mostly focus on giving immediate medical care when you are abroad or getting your home if you have a medical emergency.”
