Collective Commentary about the New Package Travel Directive

748 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE Similar rules for the negotiation of insurance of security against insolvency apply to tour operators facilitating LTA if they accept payments from the customers. The insurance of security against insolvency must apply to reasonably foreseeable costs. These costs include payments made by the customer or for the customer’s benefit for a package or for LTA, taking into account the period between the receipt of advance payments and balance payments and the end of the package or LTA, as well as estimated costs of repatriation. The agreed indemnity limit must also take into account the type of the package or LTA, including the means of transport or place of destination for the given trip or stay. Tour operators have to keep conclusive records of the following for each calendar month: a) packages sold, including the amount of revenues for these individual packages and revenues from package vouchers, if the tour operator holds a trade permit for selling of packages; b) travel services facilitated which form a part of LTA, and the amount of revenues for these services, if the tour operator holds a trade permit for facilitating of LTA. 2. Bank guarantee The requirements applicable to an insurance company apply analogously to a bank or a foreign bank that has issued a bank guarantee against insolvency of a tour operator and its utilisation. A bank guarantee against insolvency may only be obtained from a bank or a foreign bank authorised to operate in the territory of the Czech Republic. 3. Guarantee Fund The resources of the Guarantee Fund consist of tour operators’ contributions, fines for the violation of law and money raised by the Fund. The money thus collected in the Guarantee Fund is the property of the Czech Republic. Money may be paid out from the Guarantee Fund only if the amount intended to cover justified claims of customers in case of insolvency of the tour operator exceeds the agreed indemnity limit or bank guarantee to the full extent. Tour operators are obliged to pay contributions to the Guarantee Fund. Travel agencies do not pay such contributions. The calculation of the annual contribution to the Guarantee Fund is based on the revenues of the tour operators from packages and from the sale of travel services that form part of LTA.