Collective Commentary about the New Package Travel Directive

CZECH REPUBLIC | KLÁRA DVOŘÁKOVÁ 747 automatically transferred to the regime of tour operators engaged in the organisation of packages. The conditions for operating the business of travel agents remained unchanged after PTD2. However, in reality, many travel agencies had to transform themselves into tour operators because the travel products offered by many of these businesses became a package or an LTA after the transposition of PTD2. VI. TRANSPOSITION OF INSOLVENCY PROTECTION Article 17 of Directive 2015/2302 requires Member States to ensure that organisers established in their territory provide security for the refund of all payments made by or on behalf of travellers insofar as the relevant services are not performed as a consequence of the organiser’s insolvency. If the carriage of passengers is included in the package travel contract, organisers shall also provide security for the travellers’ repatriation. This obligation was implemented within Sections 6 to 10i of Act No. 159/1999 Coll. and also by Decree No. 188/2018 Coll. The Czech Republic recognises two insolvency protection options: a) insurance b) bank guarantee On top of that, there is an obligation to pay a contribution to a special fund called “Tour Operators Guarantee Fund”. 1. Insurance Insurance of security against insolvency can only be negotiated out with an insurance company that is authorised under the insurance law to provide guarantee insurance in the territory of the Czech Republic. If insurance of security against insolvency is negotiated, the tour operator and insurance company have to stipulate such insurance terms that the agreed indemnity limit is at least 30% of the planned annual revenues from sales of packages or, should the revenues be lower than the revenues for the previous year, at least 30% of such revenues for the previous year. The insurance company is obliged to satisfy the customers’ claims up to the amount of the agreed indemnity limit. If the customers’ claims exceed the agreed limit of indemnity, the claims will be satisfied through payments received by the insurance company from the Guarantee Fund.