Collective Commentary about the New Package Travel Directive

964 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE 3.1. Amount of security, deposit and payment procedure According to the new Regulations, the collateral provider or the security issuer must provide the collateral or security to the tour operator or a related tourist service provider, in favour of the Consumer Rights Protection Centre. When necessary, the Centre will submit the request for the reimbursement of the traveller’s travel expenses to the specific collateral provider or security issuer, the collateral is valid on the day the security becomes chargeable to the tour operator or the provider of related tourism services. The amount of the security is determined by the type of business the tour operator or the provider of related tourism services does and it is better described in the Figures 1 and 2: Figure 1. Amount of security 1 Created by the author. Source: Consumer Rights Protection Centre (2019). The amount of security for the tour operator or the provider of related travel services, that are not offering passenger transportation, should be at least 5% of the turnover for package or related tourism services in the previous year, (by the turnover here is considered the operating income for sales of complex or related tourism services to the travellers) but no less than 15,000 euros, if the tourism Tour operator The provider of related tourism service (does not offer passenger transportation) At least 5% of the turnover for package or related tourism services in the previous year No less than 15,000 €, if the tourism services are provided outside of Latvia, Lithuania and Estonia No less than 5,000 €, if the tourism services are provided within Latvia, Lithuania and Estonia No less than 3,000 €, if the tourism services are provided within Latvia only The turnover for package and related tourism services – operating income for sales of complex or related tourism services to the travellers