You take one glance around the house with a sense of relief. Windows and doors locked…check, tickets…check, passport…check, luggage…check…right, you’re ready to go! The roar of the taxi waits as you stroll out dragging behind you your suitcase packed with holiday clothes.

Finally, you’re at the airport. As you walk toward the check in desk, surprised by the amount of disturbance that surrounds you, you’re told, along with everybody else, you cannot fly as the company has collapsed.

And what’s worse, your insurance doesn’t cover the fact that your airline has gone bust and you’re unsure whether you can get a refund.

Last month, over 30,000 victims suffered as a result of their airlines financial downturn.

The UK’s largest tour operator, the XL Leisure Group collapsed with XL Airways facing the worst losses in aviation history. 30,000 XL victims are believed to lose almost £20m as they were not covered for compensation and therefore ineligible for a refund.

Meanwhile, 85,000 British victims of XL were left abandoned outside the UK due to the collapse of the airline.

So far in this year alone, 30 airlines have gone bust as a result of the current economic climate and as the number grows, experts believe that numbers may double by Christmas.

Early last month, chief executive, Willie Walsh, of British Airways warned that the travel industry should expect the current situation to become familiar in the next few months.

He said, "We are in the worst trading environment the industry has ever seen…We have already seen 30 or so airlines go bust this year and it would be fair to expect a similar number of casualties worldwide over the next three to four months."

Travel and leisure analyst, Joseph Thomas, of the City stockbroker, Investec, said: "XL will not be the last: there have been a number of similar issues recently of smaller tour operators hitting financial difficulties."

Planning a trip abroad now can only mean extra stress, especially when it comes to ensuring you have the right travel insurance which covers the possible financial downturn of an airline.

Chief executive, Mark Tanzer, of Abta, the representative organization for tour operators, said: “The failure of XL demonstrates the virtue of financial protection and the hazards of travelling without it.”

So how do you ensure that you’re not the next victim?

Firstly, the cheapest flights would often result in little flexibility and the cheapest insurance may only mean you get your money’s worth. With so many recent complications within the financial side of the travel industry, it can only be advised that holidaymakers ensure their insurance covers exactly what needs to be covered.

As always, be sure to read the small print

Sometimes people tend to go overboard and exceed the cover that they actually need while others don’t always go for what is required. And then there are those who don’t read the small print.

In some cases there will be exclusions and excesses in the policy written in small print. Reading the small print may cause obscure your eyes for a few moments, but it could save you a lot of money.

Booking your ticket online?

Those who book their tickets directly online are more likely to become major victims if their airline goes bust as such flights are not covered by the Civil Aviation Authority’s (CAA’s) Air Travel Organisers Licensing scheme (ATOL).

However, buying a comprehensive travel insurance policy may guarantee you are refunded back the costs.

The majority of travel insurance providers do not cover the financial downturn of airlines. The current economic climate of the travel industry may mean that passengers who do not get comprehensive cover may be future victims of being stranded abroad or having to pay extra for additional flights.

To be sure you’re not the next victim, remember, opting for adequate insurance rather than the cheapest, will be cheaper.