Collective Commentary about the New Package Travel Directive

724 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE such security. After a traveller has activated security, the insurance company or the bank, can offer him or her the continuation of a travel package. Securitymust be provided for any refunds to be paid to travellers in connection with travel package contracts for travel services whose performance has failed and will not be performed or has only partly been performed because of the organiser’s insolvency 118 or bankruptcy, or for compensation of the costs of the necessary accommodation, meals or a return to the place of departure if there are claims due to the organiser’s insolvency or bankruptcy. This is why security must be effective and it must reasonably cover all the foreseeable costs 119 . The amount of security must not be smaller than 10% of the total amount of the sold travel packages in the previous business year, i.e. it must not be smaller than 10% of the total amount of the anticipated annual amount of the sold travel packages in the current business year if the sale plan is larger than the realised sale in the previous year 120 . The violation of the obligation to provide security is considered to be a misdemeanour for which a fine is prescribed 121 . Compared to the former provisions dealing with the organiser’s obligation to provide security against insolvency in the Obligations Act, the new provisions on the organiser’s obligations to provide security for every travel package are prerequisites for a more effective protection of travellers in the case of the organiser’s insolvency. A very important progress in the protection of travellers is accomplished by an express determination of the scope and the level of security in insolvency, i.e. the minimum amount of security and the rules according to which a traveller must be guaranteed a direct activation of security against an insurance company or a bank. 4. ASSESSMENT OF THE CORRECTNESS OF IMPLEMENTATION When the PTD was implemented, due to the fact that it was a directive of maximum harmonisation 122 , Croatia was not in the position to maintain or introduce the provisions different from those in the Directive in its national law, 118 The organiser shall be deemed to be insolvent upon becoming incapable of timely payment of matured obligations, or bankrupt, resulting in non-performance of travel services included in the package (Art. 50, para. 3TSA). 119 Art. 50, para. 1, Art. 51 para.1 TSA. 120 Art. 51, para. 2 TSA. 121 Art. 107, para. 1, points 18-20 TSA. 122 Art. 4 PTD.