Collective Commentary about the New Package Travel Directive

1168 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE taken into account 49 . The methodology for the calculation of the lowest required amounts of security is prescribed in detail in the Decree on security provided by travel organisers and companies providing linked travel arrangements due to liquidity problems. When the organiser’s liquidity problems affect the performance of a package that has already started, the security covers free repatriation of the travellers and the financing of accommodation prior to the repatriation, if required. If travel services have not been performed, refunds must be provided without undue delay after the traveller’s request, if the request is justified 50 . The requirement that the traveller’s request must be justified is an addition to the wording of the Directive 51 . Nevertheless, it should not be interpreted as a tightening of eligibility criteria, but just an option for the security provider to decline the payment where the conditions for it have clearly not been met. Organisers can choose to offer insolvency protection in one of the following forms: • an insurance contract with an insurance company, • a dedicated bank deposit, • a bank guarantee or • the inclusion in a guarantee scheme 52 . If insolvency protection is provided in the form of an insurance contract, a dedicated bank deposit or a bank guarantee, the Decree specifies that the lowest amount of required security must provide coverage in the amount of at least 10% of the organiser’s annual turnover, while the minimum amount of the required coverage in a guarantee scheme must be at least 2% of the total annual turnover of all organisers included in the guarantee scheme. An organiser who did not have an annual turnover in the previous financial year must provide the minimum level of the required guarantee, which provides coverage in the amount of at least 10% of the planned annual turnover 53 . Whereas insurance contracts, bank deposits and bank guarantees are well established legal instruments regulated in the general legislation, a guarantee 49 Article 58.a(2) of the Consumer Protection Act. 50 Artice 58.a(5) of the Consumer Protection Act. 51 See Article 17(5) of the Directive. 52 Article 58.a(6) of the Consumer Protection Act and Article 4 of the Decree on security provided by travel organisers and companies providing linked travel arrangements due to liquidity problems. 53 Article 5 of the Decree on security provided by travel organisers and companies providing linked travel arrangements due to liquidity problems.