Collective Commentary about the New Package Travel Directive

HUNGARY | ANDRAS SALAMON 853 34) The basis of calculation of the amount of financial security is unchanged in practice. It is still the tour operator and traders facilitating linked travel arrangements who estimate and determine the basis of the amount of security. 35) The method of calculation of the financial security connected to sales revenues, mentioned as the first pillar is practically identical with themethodology used prior to 01 July 2018. The rate of financial security is still 12% or 20% of the relevant net sales revenues in the case of international tours, and 3% in connection with Hungarian tours. 36) At the same time, the minimum amount of financial security increased from HUF 20 million to HUF 50 million in the case referred to in Subsection (3)c), while in respect of Subsection (3)b), the minimum amount will increase from HUF 5 million to HUF 7 million, if passenger transport also forms part of package travels. 37) Regarding the fact to what extent this method of calculation is corresponding to the objective set out in Chapter V of the Directive, it is worth citing a former judgement passed in an action related to insufficient financial security: “ to achieve the objectives defined in the Directive, it is obviously inappropriate to apply the regulation whereby a tour operator is obliged to make available the cover estimated on the turnover reported by him. In this case the tour operator himself can determine what amount of cover (financial security) he intends to make available, but this does not unconditionally secure the actually necessary cover.” 4 . 38) “ Section 8 (9) of the Government Decree is replaced by the following: (9) The financial security must cover the expenses, advance payments and fees set out in Section 10(1) in each period. If the amount of advance payments and participation fees paid by travellers for package travels and linked travel arrangements, which have not yet been performed by the travel company, exceed the amount of revenue underlying the proven financial security by at least 10%, the travel company must increase the amount of financial security within seven days on the basis of the relevant advance payments and participation fees, and must provide evidence of this to the Government Agency without delay. In this case, the provisions of Section 8(3) 4 Nagy Imre and Others, Fővárosi Törvényszék (Budapest Metropolitan Regional Court) 28.P.25.571/2016/5.