---
title: "What is Provider insolvency? | Benefit Systems"
description: "Provider insolvency is the financial failure of an airline, hotel or agency, leaving booked services undelivered."
source: "aus dem gebauten HTML abgeleitet"
---
# What is Provider insolvency?

Provider insolvency is the financial failure of an airline, hotel or agency, leaving booked services undelivered.

Also called: Airline failure.

## How it works #

Statutory passenger rights become largely worthless then, because they point at a company that cannot pay. The routes that do work are a card chargeback, package travel insolvency protection, and claims against an agency that took the money itself. A mileage balance ranks as an ordinary unsecured claim and is usually a total loss.

## Not to be confused with #

Insolvency is not the same as an ordinary cancellation: with a cancellation there is an enforceable claim against an airline that can still pay.

## In German #

The German term is Insolvenz des Reiseanbieters. [German version of this term](/de/glossar/insolvenz-des-reiseanbieters)

## Related terms #

- [Chargeback](/en/glossary/chargeback): A chargeback is the reversal of a card payment through your own bank when a paid-for service was not delivered or not delivered as agreed.
- [Travel voucher](/en/glossary/travel-voucher): A travel voucher is credit with the airline offered instead of a repayment, redeemable only against that airline’s own services.
- [Mile](/en/glossary/mile): A mile is the currency unit of a frequent flyer programme: a credit in an airline account that can be exchanged for flights and other awards.

## Articles that use this term #

- [What happens to your miles if the airline fails?](/en/knowledge/miles-if-airline-fails)
- [What is a chargeback and when does it apply?](/en/knowledge/chargeback)
- [Do you have to accept a voucher instead of cash?](/en/knowledge/voucher-vs-cash)