Collective Commentary about the New Package Travel Directive

1204 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE representing companies providing packages within Sweden that did not include transportation. The new Travel Guarantees Act The new Travel Guarantees Act is similar to the old one, however it also includes some major changes. One change is that it only covers package travels and linked travel arrangements according to the definitions in the Package Travel Act. This means that there is no longer an obligation to provide security for seat only or for education trips, unless they fall under the scope of the Package Travel Act. The new act only covers package travels and linked travel arrangements that are cancelled due to the insolvency of an organiser or a trader facilitating linked travel arrangements, which means that travellers whose trips were cancelled due to other circumstances no longer can claim compensation. Finally, the new act opens up for other possible ways to provide security than before. The new act stipulates that travel guarantee should be arranged through: 1. a bank guarantee or a payment guarantee issued by an insurance company 2. an insurance 3. deposits lodged with the authority or a pledged bank account 4. other similar commitment The new act thus opens up for new ways of providing security. Since the legislator did not want the act to be obsolete due to market changes, item 4 was introduced to cover new methods for providing security that the market might come up with. When it comes to the size of the guarantee, the act states that this should be calculated in the way described in Article 17.2 of the Directive. This corresponds quite well to the way travel guarantees have been calculated in Sweden according to the old act. The Travel Guarantees Act further includes provisions regarding mutual recognition, supervision and sanctions in accordance with Articles 18.1 and 25 of the Directive. If an organiser or a trader facilitating linked travel arrangements, that should provide security, does not do so, the authority is given the right to impose a sanction fee. The fee should also be imposed on a trader who does not inform the authority on changes in the business that might lead to changes in the security. The sanction fee shall be between EUR 500 and EUR 1 000 000, but may not exceed 10% of the company’s turnover for the previous year.