Credit crunch 'could reduce the need for travel insurance'

By Tom Farley, Mon 1 Sep 2008 - Published in Travel Insurance

The number of people looking for travel insurance could be set to drop, one expert has claimed.

Bob Atkinson from Travelsupermarket.com said holidaymakers will start to reduce the number of short breaks they take as the economic downturn starts to take effect.

However, he stated that people would still take at least one holiday a year.

He stated: "What people are doing is they are changing their habits and their behaviours."

Mr Atkinson explained over recent times many people had started to take several short breaks in addition to one main holiday.

He predicted travellers would gradually begin to cut back on short breaks as a result of rising prices and a reduction in disposable income.

This is backed up by a survey for Travel Weekly which revealed 43 per cent of people were planning to take fewer holidays and short breaks than in previous years.

It has been widely reported that the price of an average family holiday has risen in price by as much as Ł400.

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