Bogus sickness claims will push up holiday prices
Fraudulent holiday sickness claims will push up the price of holidays, warned Global Travel managing director Andy Stark at the group’s overseas conference this weekend.
Stark said the rise in bogus claims was a big problem for the industry and will ultimately lead to higher prices for holidaymakers.
“It will put the premiums up from an insurance prospective which will start to push up the premiums for any sized business,” he said.
“It can also impact an operator’s relationship with hoteliers. Most of the hoteliers are overseas and the legislation in their local areas and countries is very different from the legislation in the UK. This can cause problems down the supply chain as hoteliers might be reluctant to pay up when there is no clear evidence, or will push up prices as a result of paying out compensation.”