The Towergate Travel team has successfully assisted many travel companies, tour operators and cruise companies to secure new and larger bond requirements over the last 24 months.

A key area of activity has been assisting travel companies trying to release much-needed cash flow and working capital back to their P&L by replacing bank held bonds and/or parental guarantees with insurance bonds. Towergate Travel says: “With interest rates and inflation being so volatile any cash and/or assets held against the bond are potentially reducing in real time value. The release of cash back to your P&L could potentially be better used in negotiating better deals such as the early repayment of CBILS or other loans which could be repayable at higher interest rates & other potential investment opportunities.”

Towergate also reports that it is seeing heightened activity from travel businesses trying to replace trust accounts set up in COVID times due to the lack of markets or appetite in the travel bond sector. It points out that trust accounts tie up cash and daily cash flow, while securing bonding by insurance releases cash flow back to the business.

Towergate Travel is one of a handful of bond brokers recognised by ABTOT, BCH and ABTA and is a specialist insurance broker with more than 50 years’ experience, specialising in travel bonding or financial failure.

If you have any questions or would like to discuss your current bond or insurance arrangements, call Towergate on 01932 334140 or email tcs@towergate.co.uk. To register your enquiry please do so via www.towergateinsurance.co.uk/small-business/travel-bonds