Is money invested in travel bookings safe from bankruptcy?

As a self-confessed penny pincher, I try to book travel as early as possible to avoid cost hikes. I will finally be going on a once-in-a-lifetime trip round the world after many years of saving for this. The cost is over 40,000 francs.

I would like to book the whole trip well in advance (6 months to 1 year before traveling) to save on money and just to have peace of mind knowing it's all sorted so I can be relaxed ahead of the trip.

My question is: Is the money I pay for airline, event and cruise tickets, hotel and rental car bookings, and other travel bookings guaranteed somehow? What happens if one of the operators involved goes bankrupt in the meantime? Will I get my money back?

I'd appreciate any feedback you can offer. Thanks.

Hi there,

Swiss rules governing travel packages organized by professional travel agents or agencies dictates that organizers must reimburse travelers in full if insolvency or bankruptcy prevents them from providing the paid-for services. You can find these rules here.

However, these rules only apply to packaged travel deals (flights and hotel stays booked through the same travel agency, for example), and are only applicable to Swiss travel booking services.

Swiss travel agencies need to guarantee reimbursement, and most subscribe to a travel guarantee fund like those provided by the Garantiefonds der Schweizer Reisebranche and the Travel Professional Assoiation. These funds cover the cost of reimbursing bookings if the travel agent is unable to do so.

If you book travel online, it is important to note that many travel websites are not travel agencies per se, but simply aggregate offers from travel services. Thus you may effectively be booking the various parts of your travel package from separate travel agencies - or directly from airlines, hotels and event organizers.

If you book travel through foreign travel portals or agencies, the laws governing reimbursment in the country where the merchants are domiciled apply. In this case, it may be very difficult or impossible to get reimbursed for services which aren't provided as promised.

Travel insurance generally only covers the cost of cancellations made by you, and not cancellations by travel service providers. In this case, legal expenses insurance may be more useful in covering the costs of securing reimbursement.

Best regards from Moneyguru

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