Travel Company Shut Down Leaves Tourists Stranded: Could It Happen to You?

Getting stranded abroad can be stressful and costly. (Photo: Thinkstock)

We’ve all been there. You’re on a great vacation, you’ve taken every photo and bought every souvenir. You’re ready to go home. As a matter of fact, you can’t wait to sleep in  your own bed. But what happens if you get stranded abroad?

Some 27,000 Russian tourists are experiencing that harsh reality right now. Labirint, a Russian travel company, suspended operations on Saturday, leaving traveling tourists without a way to get home from places like Bulgaria, Tunisia, and Egypt. According to this press release issued by the company, operations were suspended due to the “negative political and economic situation.”

So what does that mean for those stranded tourists? Yahoo News reported that Russian officials have managed to bring a third of them home after making emergency arrangements, but 16,000 more are still waiting for return tickets. "We hope to have everyone home by the end of the week," the acting head of the national tourism agency Rostourism, Oleg Safonov, told journalists.

This may sound like a rare occurrence, but it has happened before. In 2008, hundreds of passengers on a cruise were stranded on an island after the ship’s owners ran into some legal issues. And in 2010, another cruise line folded, leaving passengers with paid-for trips that they would never take.

Related: Protect Your Stuff: Credit Cards With the Best Baggage Insurance

While it’s impossible to predict an event like this, there are ways to prepare for the worse before you take your next international trip.

First things first, it’s important how you pay for your trip. When you’re booking a big vacation, it may make sense to use a credit card. Under the fair credit billing act (FCBA), credit card companies are required to reimburse customers for services unrendered. The rule states that the FCBA settlement procedures apply only to disputes about billing errors like “charges for goods and services you didn’t accept or that weren’t delivered as agreed.” In laymen’s terms, you can get your money back. The same cannot be guaranteed if you pay with cash or check.

Travel insurance can be a great way to ease your mind while traveling abroad. (Photo: Thinkstock)

It might also be worth it to look into travel insurance.As the story about the stranded Russian tourists showcases, traveling can be unpredictable. Travel insurance can be a great way to take the guessing out of what to do IF something goes wrong. The important thing here is research.

Travel X has a a plan specifically for air travel: Flight Insure Plus offers single-trip or multi-trip flight insurance and travel assistance to help with emergencies while you’re on the road.

Allianz’s Essential plan will cover trip cancellation and interruption protection up to the amount purchased. As with anything, be sure to read the fine print, as certain plans will not cover financial default or pre-existing medical conditions, should those be the reasons you need to cancel a trip.

Travel Guard’s platinum package covers 100 percent reimbursement for a canceled or interrupted trip. They also provide $1,000 for additional airline transportation expenses incurred by the passenger to reach their return destination. It may cost you $150-$200 for the insurance, which is important to factor in to your trip costs.

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