Collective Commentary about the New Package Travel Directive

HUNGARY | ANDRAS SALAMON 855 This means that in given cases tour operators were obliged to increase the amount of their financial security so that their financial security corresponds to the provisions of the Decree. The insurance company providing financial security informed the victims in December, after having summarized the passengers’ damage claims that the tour operator’s financial security provided cover only for 14.9% of the advance and participation fees paid. The court will be responsible for establishing whether the method of calculation of the new financial security and its amount really correspond to the objectives of the Directive, and really provide total guarantee for the repayment of the advances and participation fees paid. 42) “The following paragraph (12) is „added to Section 8 of the Government Decree: (12) The travel company must keep records related to the obligations under Section 8(3) and (9), which contain, per item in accordance with Section 8(3), the current amount of advance payments and participation fees paid by travellers in connection with the sale of package travels and linked travel arrangements, which have not yet been performed by the travel company, and the recognised net revenue arising from the sale of package travels and linked travel arrangements and the relevant settlement dates. The travel company must keep the data contained in these records for five years and make it readily available to the Government Agency for official controls.”. Subsection (12) facilitates the task of control of the Government Office related to financial security. Tour operators and traders facilitating linked travel arrangements must keep up-to-date records in a breakdown by legal titles (Hungarian tours, international tours with or without charter), which contain the amount of advances and participation fees paid by passengers against which no performance has been effected yet. The data included in the records must be kept for five years. III.B. Second pillar of insolvency protection: compulsory insurance 43) The compulsory insurance for the traveller as beneficiary is regulated in Section 9/A: