Collective Commentary about the New Package Travel Directive

896 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE the CAR which in any case will not be less than 4% and not more than 10% of the projected turnover of the organiser or trader for the year for which the security is being arranged 55 . Factors including the financial, business and organisational resources of the organiser or trader facilitating linked travel arrangements, the value of the packages or linked travel arrangements sold, the destination, time of travel or mode of transport, the past activities of the organiser or trader facilitating linked travel arrangements and the membership or management of that organiser or trader, shall also be taken into consideration by the CAR in fixing the amount of the security to be arranged 56 . Schedules 3 and 4 to the 1995 Act (as amended) contain the required wording for guarantees. Where the security is being provided by way of insurance, the insurer must agree to indemnify travellers (who shall be insured persons under the policy) and refund the travellers in the event of the insolvency of the organiser or the trader facilitating linked travel arrangements. Section 22(2) of the 1995 Act (as amended) further provides that every contract of insurance with a traveller shall include a term that the traveller acquires the benefit of the policy. 7.1.6. Travel Agents acting as Retailers As we have seen 57 , the Irish government did not avail of the option contained in the second paragraph of Article 13(1) to introduce provisions whereby the retailer would also be responsible for the performance of the package. Had it done so, the provisions of Article 7 and Chapter III, Chapter IV and Chapter V of the Directive would be applicable to the retailers carrying on business in Ireland. However, travel agents, that are licenced by the CAR, continue to be required to provide security for packages which they sell on behalf of organisers, by virtue of the definition of overseas travel contracts contained in the 1982 Act and the amendments made to Sections 4 and 5 of the 1982 Act, consequent upon Regulation 25(2)(a) and (b) of S.I. No 80. There does not seem to be any basis in the Directive for retailers to be required to provide insolvency protection arrangements in respect of third party packages, 55 Section 24(1)(d) of the 1995 Act (as amended). 56 Section 24(6)(a)-(e) of the 1995 Act (as amended). 57 See further Section 6.1. of this Chapter.