The collapse of Goldtrail could see radical reforms to compensation rules for travellers and could have a knock-on effect on
travel insurance.
Goldtrail, which collapsed last week, has left hundreds of holidaymakers facing disappointment and some stranded abroad.
According to the Press Association, transport minister Theresa Villiers has urged reforms for the system that compensates travellers affected by failing holiday companies.
She told the House of Commons that the Civil Aviation Authority (CAA) is hard at work helping those stranded abroad to return home.
"In the longer term we need a bigger reform of the way the system works," she commented.
Goldtrail customers are protected under the Air Travel Organisers' Licensing scheme, meaning that most of them should get the money they paid for their holidays back, although the CAA said this could take several months.
They will also be able to claim for out-of-pocket expenses like accommodation costs for extra nights spent abroad.
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