Collective Commentary about the New Package Travel Directive

854 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE are relevant to the calculation of the amount of financial security, with the difference that any reference to net sales revenue in those provisions must be understood as the amount of advance payments and participation fees paid by travellers for package travels and linked travel arrangements.”. The amendment repealed the former paragraph a) of Section 10(1) of the Decree. As a consequence of the repeal of paragraph a), the costs of repatriation of passengers and their forced stay may not be financed from the financial security any more after 01 July 2018. The financial security may exclusively be used to repay the advance and the participation fee as listed in Section 10(1). 39) In principle, this solution represents a substantially larger, or perhaps total guarantee for the full repayment of the advance and participation fee of the passenger, as contrary to the former regulation, neither the costs of repatriation, nor of forced stay shall be financed from the above sum. 40) In principle only because the case of the tour organiser known under the brand name Fáraók (Pharaohs in English) highlights that the amended financial security, which is still unchanged in consideration of the method of calculation does not provide reassuring and total repayment guarantee to passengers. 41) The tour organiser Fáraók ( Pharaohs ) announced its insolvency on 12 November 2018. Based on Section 14/A(2) inserted in Government Decree 213/1996 (23 December) by Government Decree 79/2018 (20 April), the amendments effective as of 01 July shall apply to the travel contracts concluded with passengers after 01 July 2018 and the financial security of traders facilitating linked travel arrangements 5 . 5 14/A. § (2) Where applicable, the trader shall increase the financial security referred to in Section 8(3) of this Decree, as amended by Section 3 of Government Decree No 473/2017 of 28 December 2017 amending Government Decree No 213/1996 of 23 December 1996 on the activities of tour operators and travel agents, by an amount corresponding to the reference value based on net turnover from sales calculated in accordance with the Accountancy Act in the year in which the guarantee contract with the credit institution or the insurance contract was concluded or the cash was deposited, with the proviso that the increased financial security shall cover trips begun or already underway on 1 July 2018. By 31 August 2018 the trader shall provide the Government Office with suitable evidence that the financial security has been increased.