German Bundestag passes resolution to amend the Insolvency Protection Act for Travel Security Funds
On January 28, 2025, the German Bundestag passed a resolution to amend the Insolvency Protection Act for Travel Security Funds (Drucksachen 20/14706: Gesetzentwurf Entwurf eines Gesetzes zur Änderung des Gesetzes über die Insolvenzsicherung durch Reisesicherungsfonds (PDF)).
The amendment aims to strengthen the financial security of travelers and to ensure that they are adequately protected in the event of insolvency of a tour operator or airline. The law will come into effect on January 1, 2026.
Key changes introduced by the amendment:
- Increase in the minimum amount of security required: The minimum amount of security that tour operators and airlines must provide to the Travel Security Fund will be increased from €500,000 to €1 million. This will provide a higher level of protection for travelers in the event of an insolvency.
- Extension of the scope of coverage: The amendment will extend the scope of coverage of the Travel Security Fund to include travel agency insolvency. This means that travelers who book their trips through a travel agency will also be protected in the event of the agency’s insolvency.
- Strengthening of the Travel Security Fund: The amendment will strengthen the Travel Security Fund by increasing the amount of money that it can borrow from the federal government. This will ensure that the fund has sufficient resources to meet its obligations to travelers.
Implications for travelers:
The amendment will have a number of positive implications for travelers. It will provide them with a higher level of financial security in the event of a tour operator or airline insolvency. It will also extend the scope of coverage of the Travel Security Fund to include travel agency insolvency. This will give travelers peace of mind when booking their trips.
Conclusion:
The amendment to the Insolvency Protection Act for Travel Security Funds is a welcome step that will strengthen the financial security of travelers. It will ensure that travelers are adequately protected in the event of an insolvency of a tour operator or airline. The amendment will come into effect on January 1, 2026.
20/14706: Gesetzentwurf Entwurf eines Gesetzes zur Änderung des Gesetzes über die Insolvenzsicherung durch Reisesicherungsfonds (PDF)
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