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Excite Holidays has gone into voluntary administration, so check your travel insurance

Posted: 16 January 2020 9:58 am
News

Serious woman

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.

BrandCover limitYou can get covered forApply
Webjet logo$10,000
  • Unrecoverable and unused travel arrangements
  • Reasonable costs of rescheduling your trip
  • Reasonable costs of additional travel arrangements if you have to return home early
  • The value of your frequent flyer points, air miles or vouchers used to pay for your trip
Insure4less Icon$5,000
  • Unrecoverable and unused travel arrangements
  • Reasonable costs of rescheduling your trip
Tick-Travel Insurance Logo$1,000
  • Unrecoverable and unused travel arrangements
  • Reasonable costs of rescheduling your trip
  • Reasonable costs of additional travel arrangements if you have to return home early
Picture not described$1,000
  • Unrecoverable and unused travel arrangements
  • Reasonable costs of rescheduling your trip
  • Reasonable costs of additional travel arrangements if you have to return home early

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.

Picture: GettyImages

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