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May 22, 2022

Travel agencies to fully disburse tourists in case of bankruptcy

An order of minister delegate for SMBs, Business Environment and Tourism appeared on Monday in the Official Gazette, covering the tourists in case a travel agency goes bankrupt or insolvent. Thus, the travel agencies will have to fully pay the tourists in case of bankruptcy, as the state forbade franchise insurances as of Monday, by which the travel agencies gone insolvent had to suffer only part of the losses incurred by tourists. The normative documents, aiming to increase the tourist’s safety, stemmed from the latest months’ analysis conducted by a working group made up of tourism representatives, according to ANT chairman Razvan Filipescu. He explained that a travel agency had been able by now to sign a contract of franchise with an insurance company, which in some cases covered up to 80 percent of the insured sum. Thus, a retail travel agency paid in case of bankruptcy only 20 percent of the holiday price and the rest of 80 percent was the tourist’s responsibility.

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