Customer trap for package holidays: EU is planning strict innovations for travelers!

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Expert Felix Methmann discusses the EU Package Travel Directive and its impact on consumer protection and the travel industry.

Experte Felix Methmann diskutiert die EU-Pauschalreise-Richtlinie und deren Auswirkungen auf Verbraucherschutz und Reisebranche.
Expert Felix Methmann discusses the EU Package Travel Directive and its impact on consumer protection and the travel industry.

Customer trap for package holidays: EU is planning strict innovations for travelers!

In the current discussion about package travel law, Felix Methmann, travel law expert at the Federal Association of Consumer Organizations (VZBV), comments on the EU's new package travel directive. Loud fvw.de He does not expect any significant changes from the travel industry in the upcoming trilogue in which the EU Commission, Council and Parliament will negotiate the new legislation.

Methmann makes it clear that the tourism industry does not appear uniform and that there are different opinions on the current draft within the industry. Critics fear, among other things, that the planned innovations could be detrimental to the travel industry. However, the aim of the draft is to improve consumer protection.

New ideas in package travel law

The Package Travel Directive, which was implemented into German law by the Third Act Amending Travel Regulations in 2017, requires certain tour operators to provide security for the reimbursement of all payments in the event of insolvency. These regulations apply to contracts concluded since July 1, 2018, as shown on the website Federal Justice Office is explained.

Key points of the policy include that travelers pay the entire cost of the trip before the start of the trip and are entitled to a refund in the event of cancellations or cancellations of travel services. If the tour operator goes bankrupt, travelers must not be disadvantaged. It is also required that tour operators in the EU, Norway, Iceland or Liechtenstein must provide security deposits for refunds.

Insolvency protection for tour operators

A groundbreaking aspect of the new regulations is the Travel Insurance Fund Act (RSG), which has been in force in Germany since November 1, 2021. The German Travel Security Fund (DRSF) was commissioned to manage fund assets into which the tour operators pay. In the event of insolvency, the travelers' claims will be satisfied from these fund assets.

In addition, tour operators with a turnover of less than 10 million euros can also obtain their insurance through insurers or credit institutions. Travelers have the opportunity to assert reimbursement claims against the respective insurer, which the tour operator must also provide information about.

The consumer advice centers are also available as a contact point for those seeking advice who have questions about booking package holidays. However, the Federal Office of Justice emphasizes that it does not provide legal advice. Further information on the Package Travel Directive is available on the European Commission website.

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