The state of the UK economy has taken its toll on consumer finances this year, and latest reports show that nearly one-fourth, or 24 per cent, of all British holidaymakers are planning on taking their next holiday without the benefit of travel insurance.

An American Express survey has found that approximately 14.5 million Britons would likely risk travelling without having travel cover over the next year.

The findings were part of a larger study on financial safeguards, which found that almost half of Britons, or 48 per cent, were looking for save money in the near term by cutting back on such types of protection.

A spokesman for American Express, Chris Rolland, said that these types of cuts were least advisable in the current economic climate, as most travellers do not have the available funds to cover medical care abroad or repatriation in the case of a medical emergency.

“Should something happen, the current economic market means that the last thing Brits need now is an unexpected bill,” he emphasised.

Not only is the current credit crunch having a negative impact on consumers, it is taking its toll on the travel industry as well, with both Zoom Airlines and XL Leisure being two of the latest casualties. Both operators went out of business recently, leaving thousands of passengers stranded at holiday locations abroad.

www.americanexpress.com