Insurance info if Thomas cook goes bust

[MariaLynda]

I really like tc and hope things get better for them. Also hope virgin don't buy them Manchester fares are bad enough as it is.

[myaquarium]

Originally Posted by Quensabob

Don't worry everyone its pointless Thomas Cook have been going for over 100 years and there is still life left in them, threads with unfounded doom and gloom dont help, just make sure your covered for every potential.
The anouncement today was expected and the share price is already recovering!

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I don’t think it’s meant to be spreading doom or gloom. It’s about being prepared for all eventualities. I’m more worried about being stranded in the USA. Especially now that Barclays have told me their insurance won’t even cover repatriation if they went bust in the middle of our holiday.

[Guest]

Originally Posted by Quensabob

Don't worry everyone its pointless Thomas Cook have been going for over 100 years and there is still life left in them, threads with unfounded doom and gloom dont help, just make sure your covered for every potential.
The anouncement today was expected and the share price is already recovering!

See more...

Woolworths had been going for 150 years, Lehman brothers nearly 200

Where are they today? Previous history is absolutely no guarantee of future solvency

[ERICSMUM]

Originally Posted by Quensabob

Don't worry everyone its pointless Thomas Cook have been going for over 100 years and there is still life left in them, threads with unfounded doom and gloom dont help, just make sure your covered for every potential.
The anouncement today was expected and the share price is already recovering!

See more...

I always like to be positive but I’m uneasy that the loss of £1.5 billion for half-year is very big for a company that size, although I haven’t looked their balance sheets etc.

Their announcement said that it was mainly caused by people not booking for various reasons including fear of terrorism and uncertainties of Brexit.

To my mind it takes a lot of lost bookings to result in that big a loss. Obviously dependant on the profit margins built into their costings & prices.

Issues might include withdrawal of credit by their bankers, do they lease or own their planes, do they have a good “buffer” of currency already secured before the exchange rates started to fall ?

Anyway these are just my thoughts. With the help of their creditors they might very well be snapped up by another company. Let’s hope so.

[Guest]

Originally Posted by myaquarium

I have paid for my flights with a credit card but the dilemma is paying Disney my balance in June. If I pay with a credit card will that give me cover.

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It will give you cover in the event Disney go bust, but it won't cover reimbursement for your hotel if an unrelated transaction (in this case your separately booked flight) suffers the same fate.

You need travel insurance that covers end supplier failure, that will be difficult to get with TC now being in this position as you have to declare (usually it's just in the T&C no one actually asks you explicitly) that you are now aware of any risks to your current plans at the time of taking out the insurance - you can't say this truthfully so any insurance would be void

[Quensabob]

Originally Posted by Guest

Woolworths had been going for 150 years, Lehman brothers nearly 200

Where are they today? Previous history is absolutely no guarantee of future solvency

See more...

It also means they have history and something to fight for!

[BigPetesWife]

which/consumer-rig...line-goes-bust

This should explain everything you need to know. From what I can gather you have three options:
- try to get insurance that will cover you
- try to make your booking one so that it is ATOL protected which would cover you if they went bust whilst away and get you repatriated
- risk it and hope it doesn't happen, but be prepared to have increased costs if it does and you need to book new flight(s) (you should get your money back though as you paid on your credit card)

[Quensabob]

Originally Posted by ERICSMUM

I always like to be positive but I’m uneasy that the loss of £1.5 billion for half-year is very big for a company that size, although I haven’t looked their balance sheets etc.

Their announcement said that it was mainly caused by people not booking for various reasons including fear of terrorism and uncertainties of Brexit.

To my mind it takes a lot of lost bookings to result in that big a loss. Obviously dependant on the profit margins built into their costings & prices.

Issues might include withdrawal of credit by their bankers, do they lease or own their planes, do they have a good “buffer” of currency already secured before the exchange rates started to fall ?

Anyway these are just my thoughts. With the help of their creditors they might very well be snapped up by another company. Let’s hope so.

See more...

The issue I have is all the definitely going under posts when its not the case, they now have additional funding until they sell their airline so they should be fine till next april, lets see then, none of these posts help people who have already booked with them advising them to cover themselves for all eventualities is the best way forward!

[ERICSMUM]

The following comment sounds alarmist but needs to be considered by anyone who feels secure because they’ve paid by credit card.

There is a “grey area” where bookings or purchases are made through a third party.

For example a booking for a flight with XYZ Airlines made through QPR Flight Brokers Ltd and paid by credit card. Your payment is to QPR Brokers but the failure is by XYZ Airlines. Credit card companies have in the past disputed that they are responsible for refunding.

Off the top of my head I don’t know if this situation still exists or had been clarified.

Do any other Dibbers have upto date info ?

I’m off to do some research.

[Quensabob]

Originally Posted by Guest

It will give you cover in the event Disney go bust, but it won't cover reimbursement for your hotel if an unrelated transaction (in this case your separately booked flight) suffers the same fate.

You need travel insurance that covers end supplier failure, that will be difficult to get with TC now being in this position as you have to declare (usually it's just in the T&C no one actually asks you explicitly) that you are now aware of any risks to your current plans at the time of taking out the insurance - you can't say this truthfully so any insurance would be void

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Not sure this is really true I think that would only be the case if they were in administration, loads of airlines have issued profit warnings does this mean none will be covered!