Excite Holidays has gone into voluntary administration, so check your travel insurance
If you have the right policy, travel insurance can help those left in the lurch by Excite Holidays.
Excite Holidays has suspended all its operations after two of the companies it used to operate locally, Global Travel Specialists Pty Limited and Global Travel Holdings Pty Limited, were placed into administration.
Many travellers' flights to destinations such as New Zealand, Tokyo and Thailand have been cancelled without notice or made invalid.
According to a report by Nine News, Excite Holidays withdrew from the Australian travel accreditation scheme last year. This accreditation scheme helps protect travellers from losses when companies go into administration.
What to do if you've been impacted
First, contact Excite Holidays to see if there is any way to recover your expenses. If not, contact your travel insurance provider to see if you're covered for insolvency or financial default of a travel company.
Keep in mind that you won't be covered for Excite Holidays' insolvency if you buy a policy now. That's because it's now a "known event" in insurance terms, meaning you won't be covered. If you bought a policy before they went into administration, and your travel insurance provides financial default cover, you may be able to get your money back.
How to prepare for next time
If you're worried about your travel provider going under, look for a policy with financial default cover. Unfortunately, it's not a benefit that's usually included in a travel insurance policy, but here are a handful of brands that do cover insolvency.
Keep in mind that policies will have a limit on the maximum amount you can claim. For instance, if the limit is $1,000 but your trip cost $3,000, you will be out of pocket for $2,000. To ensure you're not out of pocket for a lot, look for a higher limit.