“It's important to research, you know, the airline, the hotel, whoever you're traveling with, to make sure that they are going to be solvent when you're traveling with them,” Passy said.
Passy also said to read the small print when buying travel insurance.
“If you purchase travel insurance, verify that they protect you in the case that a company goes out of business,” he said.
Passy said these collapses are becoming more common and knowing this information ahead of time, instead of being caught off-guard during a trip like Thomas Cook customers, is beneficial.
Thomas Cook collapsed after failing to secure rescue funding, and travel bookings for its more than 600,000 global vacationers were canceled on Monday.
An estimated 1 million future travelers will find their bookings for upcoming holidays canceled. They are likely to receive refunds under the terms of the government's travel insurance plan.
The company, which began in 1841, blamed a recent slowdown in bookings because of Brexit uncertainty for contributing to its crushing debt burden.
FOX Business’ Ken Martin contributed to this article.