London - Britain's already struggling travel industry has suffered a further setback with the collapse of XL Leisure Group, one of the country's largest tour operators.

More than 89,000 vacationers were stranded abroad - mainly in Orlando, Florida and the Caribbean - as a result of the collapse of the tour operator, which ran out of money and grounded its aeroplanes on Friday.

Another 200,000 people who have booked and paid for XL holidays are now scrambling to have insurers cover their losses and to rebook elsewhere.

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