Collective Commentary about the New Package Travel Directive

ESTONIA | IRENE KULL 779 for different securities provided for in the previous text were kept 48 . The main task was to find minimum rates which will suit for all businesses, taking into account differences in their volumes of activity, the mode of transport used, seasonality and other aspects. Also interests of small businesses were taken into account to avoid significant influence on the ability of smaller companies to operate on the market. The basis for calculating the amount of collateral is the annual travel package sales planned by the travel company, which was adapted already during the transposition of the Directive 90/314/EEU 49 . The principle that current percentages and minimum amounts do not depend on the business volume of the travel company accepted before transposition of the Directive was also maintained. However, if the sales exceed the travel undertaking’s planned annual total sales of packages and linked travel arrangements, the security is calculated on the basis of the travel undertaking’s total sales of packages and linked travel arrangements during the previous calendar year (§ 15 1 (6) TA). A travel undertaking shall select between warranty or insurance or use both types of securities issued by an insurance company, credit institution or financial institution located in a Member State of the European Economic Area (§ 15 1 (7) and (8) TA). Security shall meet requirements provided for in § 15 1 (9) of the TA. In the case of premature discontinuation of the security or the premature reduction of the amount secured requires the Consumer Protection andTechnical Regulatory Authority’s consent in a format which can be reproduced in writing is required (§ 15 1 (9) subsection 6 TA). If a travel undertaking is engaged in several areas of activity where the provision of security is required, the security shall not be smaller than required in the area of activity with the greatest amount of security (§ 15 1 (11) TA). Obligation to assess the sufficiency of security lies on travel trader if necessary ((§ 15 1 (12) TA). 48 See § 15 1 (1)-(4) of the TA. 49 Planned annual total sales of packages is used as a bases for the minimum rate of the security in subparagraphs 1-4 of the § 15 1 (1) of the TA. For example, travel traders who organise of packages which include travel services provided outside of Estonia and charter flights and intermediating of packages combined by a travel undertaking of a state outside the European Economic Area shall provide security of at least seven per cent of the travel undertaking’s planned annual total sales of packages, but no less than 32,000 euros; traders who organise of packages which include travel services provided outside of Estonia and scheduled flights shall provide security of at least three per cent of the travel undertaking’s planned annual total sales of packages, but no less than 32,000 euros; traders who organise of packages which include travel services provided outside of Estonia, except for charter flights or scheduled flights shall provide security of at least seven per cent of the travel undertaking’s planned annual total sales of packages, but no less than 13,000 euros; traders who offer of linked travel arrangements and facilitation of entry into contracts shall provide security of at least three per cent of the travel undertaking’s planned annual total sales of linked travel arrangements, but no less than 13,000 euros.