1000 Greek hotels to be closed or sold: Is your holiday protected against insolvency?
As many as 1000 hotels in Greece are expected to close or be put up for sales in the coming weeks according to a report in the Sunday Times.
In the light of this news, travellers planning a holiday to Greece should check how their holiday is protected in the event of insolvency and if necessary add Scheduled Airline Failure (insolvency cover) to their travel insurance.
Large numbers of Greek hotels are expected to close or be sold due to a predicted drop in visitor numbers this summer, recent anti-German have been blamed for a 20-30% drop in German bookings, whilst bookings from Britain and Ireland are also expected to be approximately 10% down.
Although the crisis is not expected to impact larger four or five star resorts, smaller, independent hotels are more at risk and travellers should check what protection they have in place in the event that one of their holiday suppliers was to become insolvent.
Holiday makers booking a traditional package holiday including flights and accommodation with a bonded tour operator will have their holiday ATOL protected, which means that if their planned hotel closes, their tour operator would be required to provide them alternative accommodation, or a full refund. Holiday makers should check with their tour operator or travel agent about this kind of protection.
Travellers who book their holiday independently, for instance direct with a hotel and/or an airline, rather than booking a traditional package holiday would not have this kind of financial protection and should consider adding insolvency cover to their travel insurance policy.
Insolvency cover often known as Scheduled Airline Failure or Dynamic Packaging Cover provides additional travel insurance protection, allowing you to make a claim to recoup costs in the event that your pre-booked airline or accommodation becomes insolvent.