The bankruptcy of a European tour operator
If the tour operator is domiciled in an EU/EEA country the tour will be comprised by the travel guarantee rules of the country concerned. According to the package tour directive, all EU countries are under an obligation to provide a guarantee in case a tour operator goes bankrupt in order that the consumer can obtain a refund of the tour price and return home.
To be covered by the Danish Travel Guarantee Fund the tour must have been bought from a tour operator with an office in Denmark or from an agent for a foreign tour operator, if the agent has an office in Denmark. Thus, the Travel Guarantee Fund does not provide cover if the tour operator does not have an office in Denmark.
It may be particularly difficult to determine in which country the tour operator is domiciled when tours are bought on the Internet. If you cannot find the seller’s contact information on the website you should find another site for your shopping. If the information is missing this will frequently be a sign that the seller is not interested in being found. In case of subsequent problems, you will be placed in a difficult situation if, for example, all you have is the seller’s email address.
The coverage rules – both within and outside the EU – may differ greatly from the Danish rules, so before you buy the tour it is a good idea to ask the tour operator about the coverage rules that apply to the tour concerned.
If the tour operator is domiciled outside the EU/EEA area you cannot be certain that there is any travel guarantee scheme at all. You therefore risk that you will have to arrange the return trip yourself if the operator goes bankrupt.
If you are in doubt about how to protect yourself in case of bankruptcy during your trip in the EU, contact the European Consumer Centre.
The bankruptcy of a Danish tour operator
If a Danish package tour operator goes bankrupt the Travel Guarantee Fund can help you with the return trip, compensation and damages.
All tour operators offering and selling travel packages in Denmark in their own names are required by the Danish Travel Guarantee Fund Act to be registered with the Travel Guarantee Fund. You can always obtain information about whether a certain tour operator is registered with the Fund by making a search under "Registered Tour Operators" on the Travel Guarantee Fund’s website (only available in Danish).
The Travel Guarantee Fund is a private independent institution. The Fund provides assistance to travel customers who are in difficulties because their tour operator has gone bankrupt.
Only package tours are covered by the Fund, and the package tour must have been bought from a tour operator with an office in Denmark or from the agent of a foreign tour operator if the agent has an office in Denmark.
If the Danish tour operator goes bankrupt before you have started your tour the Travel Guarantee Fund can compensate you for the amount you have paid to the tour operator.
The Fund does not compensate amounts for an insurance you have bought in connection with the tour. If you wish to have this amount compensated you must contact the insurance company concerned directly.
If the Danish tour operator goes bankrupt during a trip and you cannot continue to stay at your hotel because of the bankruptcy the Fund will arrange overnight accommodation for you. The Fund will also ensure that you are transported back to the place where the tour was commenced if you bought the transport from the tour operator.
According to the Act, the Fund must arrange for return transport ‘within a reasonable period’. You may have to stay longer at the destination than originally assumed but the Fund cannot cover lost earnings or the like as a result of your returning late.
The Fund does not cover the cost of tickets if you do not want to await the transport home arranged by the Fund and instead choose yourself to organise your trip home.
If the Fund has to interrupt your holiday you will receive compensation for the part of the holiday you did not take.
You can read more about the Travel Guarantee Fund on the Fund’s website www.rejsegarantifonden.dk (only available in Danish).