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US News is my package holiday now safe?

06:50  03 august  2021
06:50  03 august  2021 Source:   pressfrom.com

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In the bankruptcy of a tour operator, neither the customers into the tube should still look in the tube nor the taxpayer. Packages are hedged with a new fund to deposit the organizers themselves. This triggers the previous hedge by insurance or bank guarantees.

Ein neuer Reisesicherungsfonds soll Pauschalreisende im Fall einer Pleite ihres Veranstalters besser schützen. © Frank Rumpenhorst / DPA / DPA-TMN A new travel security fund should better protect package travelers in the event of bankruptcy of their organizer.

A state warranty should ensure that canceled trips can be reimbursed even if there is enough money in the fund. The travel right expert Prof. Ernst Führich meets the background - and gives an assessment of whether a flat-rate travelers are really secured.

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Question: Why was a new travel security fund set up?

Ernst Führich: The EU Package Rule Directive obliges tour operators to hedge the advance payments received by the travelers and the contractually associated return transport of the travelers.

Especially the insolvency of the second largest German travel organizer for Packages Thomas Cook in September 2019 has shown that the current annual liability limit of 110 million euros per insurer is insufficient. Therefore, the taxpayer had to step in and take over the amount of almost 40 million euros, which was not reimbursed by the Sicherer Zurich at Cook vacationers.

In addition, the previous system threatens to disintegrate due to the Cook Lane and the Corona Pandemic. With the previous Sicherers Generali, Swiss Re and HDI, three of six hedges have passed themselves from this market due to the lack of profits and high risk. Currently, only R + V, Zurich and Tourvers are working as a hedger.

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Question: Does this new fund really protect me as a package holidaymaker?

Leading: The new package protection protection by the travel security fund law is based on the Dutch model: from 1 November 2021, with insolvency of the organizer all payments on the travel price, the accommodation and the return journey are secured. The possible maximum loss in the case of insolvency is accepted with 22 percent of sales, which a secured tour operator achieves. Only Sicherer for all organizers from 3 million euros Annual turnover is the new travel security fund.

Under this revenue limit, medium-sized tour operators can safely secure insurance, banks or the fund against their insolvency. The fund should have a performance of 750 million euros by 2027.

The state wants to secure the travel security fund during the construction phase by a guarantee or warranty for a loan that the travel security fund must accommodate in the event of damage. State hedging is valid until 31 October 2027 and covers the difference between the existing fund assets plus collateral and the target capital. Thus, the package holidaymaker in my opinion is certainly protected in a bankruptcy.

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Question: Where are you still seeing weak points in the new construction?

Leader: The largest vulnerability is the additional burden on the tour operators, as the cash registers are empty by the Corona crisis. TUI and other major organizers have to deposit at least one percent of the net annual sales in the Fund for seven years. The first years of the construction phase are therefore more than critical. The high costs for the Fund are inevitably be transferred to travel prices. Thus, there is a risk that vacation packages are too expensive as a package with at least two travel services such as flight and accommodation compared to travel places.

from consumer view it is still scandalous that neither Berlin nor Brussels create a hedge of the air prize payments to be made in advance, though the Corona threatens future bankruptcies of airlines. In addition, pure hotel accommodations and apartments are no vacation packages and thus not hedged.

to the person: Prof. Dr. med. Ernst Führich is one of the leading travel professional scientists in Germany. He is the author of the standard work "Reierezecht" and the Kemptner ReiseMängelsticht and worked in travel rights as an expert in the German Bundestag.

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