Mechanical instability in a pre-tensioned finite hyperelastic tube subjected to a slowly increasing internal pressure produces a spatially localized bulge at a critical pressure. This instability is studied in controlled experiments on inflated latex rubber tubes, from the perspective of buckling observed in aneurysms and their rupture risk. The fate of the bulge under continued inflation is governed by the end-conditions and the initial tension in the tube. In a tube with one end fixed and a weight attached to the other freely moving end, the bulge propagates axially at low initial tension, growing in length, and the tube relaxes by extension without buckling. Rupture occurs when the tension is high. By contrast, the bulge formed in an initially stretched tube held fixed at both its ends can buckle or rupture, depending on the amount of initial tension. Experiments are reported for different initial tensions and boundary conditions (BCs). Failure maps in the stretch parameter space and in stretch–tension space are constructed by extending existing theories for bulge formation and buckling analyses to the experimentally relevant BCs. Failure maps deduced from the theory are compared against experiments, and the underlying assumptions are critically assessed. Experiments reveal that buckling provides an alternative route to relieve the stress built up during inflation. Hence, buckling, when it occurs, can be a protective fail-safe mechanism against the rupture of a bulge in an inflated elastic tube.