Guarantee funds for travel packages and airline tickets are set to fully compensate tourists in the event of travel agency bankruptcy or in cases where flights are not operated or experience delays. By establishing these two entities, Romania would align itself with practices in other countries such as France, Germany, the United Kingdom, and Denmark.
In mid-May, the Ministry of Economy, Entrepreneurship, and Tourism and the National Association of Travel Agencies in Romania (ANAT) announced they were considering drafting a normative act to establish a guarantee fund for travel agency insolvency and bankruptcy.
At the same time, the two entities discussed the possibility of establishing a flight ticket guarantee scheme through a separate instrument.
Traian Bădulescu, communications consultant for the National Association of Travel Agencies in Romania (ANAT), stated that the fund covering the risk of insolvency or bankruptcy of travel agencies would guarantee the full refund of the value of purchased travel packages that were not fulfilled.
“It is not known exactly from which contributions this fund would be financed; these amounts will likely be calculated based on an algorithm, etc. The sums would be paid by local agencies or foreign agencies that have branches in Romania,” he explained.
According to him, until now, individuals who purchased travel packages from companies that went bankrupt were compensated through insolvency and bankruptcy insurance taken out by tour operators.
“The problem is that insurance caps are often modest. For example, an agency might pay a 500 EUR premium, which can provide coverage of a few thousand euros in case of bankruptcy. Frequently, these amounts are not sufficient to compensate everyone who bought travel packages. Once insolvency is triggered, the victims also sign up for the creditors’ table, but again, there is no guarantee they will be fully compensated,” explained Traian Bădulescu.
He noted that in many Western European countries, such institutions already exist and function very well. “The examples that come to mind now are France, Germany, the UK, and Denmark.”
Regarding the guarantee fund that would ensure compensation for those who purchased airline tickets for flights that are delayed or not operated, it would most likely be financed by ticket purchasers.
“The same procedure exists in the rest of Europe, and the associated fee is one euro. It is true that current European regulations require air operators to provide compensation for flights that are not operated or have delays of more than 3 hours. Airlines must provide tourists with accommodation and meals, and even monetary compensation, but not all companies comply with these rules,” explained the ANAT communications advisor.
Traian Bădulescu also stated that there have been situations where travel agencies paid for flight tickets sold as part of travel packages, especially when transport operators went bankrupt.
Frequently Asked Questions
What do these new guarantee funds cover?
They are designed to provide full compensation for tourists in the event of travel agency bankruptcy or if airline flights are canceled or significantly delayed.
Why is the current insurance system being replaced?
The current system relies on modest insurance caps that often fail to cover the total losses of all affected tourists when a large agency fails.
How will the flight ticket guarantee fund be funded?
It will likely be funded by a small fee—approximately one euro—paid by passengers at the time of ticket purchase, similar to models used in other EU countries.