Collective Commentary about the New Package Travel Directive

HUNGARY | ANDRAS SALAMON 859 52) It cannot be established, on the basis of the Decree, that in case the insurance taken out for the traveller as beneficiary fails to provide cover for the costs of travelling home and forced stay, who is responsible for financing the costs of repatriation of travellers. 53) “The following Section 10/A is added to the Government Decree: Section 10/A The value of the financial security of the trader facilitating linked travel arrangements in the form of a guarantee contract, insurance contract or cash deposit concluded with the credit institution shall be 10% of the annual net sales revenue arising from the sale of the linked travel arrangement, or an amount equivalent to at least HUF 5 million.”. 54) Rate of financial security: an amount equal to 10% of the annual net sales revenues generated from the sale of linked travel arrangements, but at least five million Hungarian forints. 55) In case the transport of passengers also constitutes part of linked travel arrangements, the trader facilitating linked travel arrangements must take out compulsory insurance for the traveller as beneficiary on the basis of Section 9/A of the Decree when concluding the contract for linked travel arrangements (repatriation insurance). 56) Rate of repatriation insurance: an amount equal at least to 10% of the financial security, or at least 20% thereof in the case of passenger transport by non-schedule aircraft (charter flight). IV. TRAVEL SERVICES, PACKAGE TRAVEL AND LINKED TRAVEL ARRANGEMENTS With the exception of Chapter V on insolvency protection, all other provisions of Directive (EU) 2015/2302 (hereinafter referred to as the Directive) were transposed into the Hungarian legal order by Government Decree 473/2017 of 28 December (hereinafter referred to as the Government Decree). IV.A. Introductory provisions, effect and concepts 57) Title of the Government Decree: Government Decree on contracts relating to travel services, in particular on contracts relating to package travel and linked travel arrangements.