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Travel Organisers and providers of Linked Travel Arrangements (LTA’s) must secure customer funds received against insolvency. This is to ensure that travelers are reimbursed for their deposits and final payments, any repatriation costs and other specific costs incurred as a result of the insolvency.
If the annual insurable turnover is less than 10 million euros, the obligations can be met by taking out insolvency insurance; alternatively, the obligation can also be fulfilled via the German Travel Insurance Fund (DRSF). From am annual inusurable turnover of 10 million euros, coverage via the DRSF is mandatory in accordance with § 651 r Para. 2 Sentence 1 BGB.
Travel Organisers and providers of LTA’s who take out voluntary or mandatory coverage via the DRSF must provide a bond (bank, insurance) of at least 5% of the sales subject to insurance. In Germany, Arcus Solutions only offers coverage for companies that comply with their obligation via the DRSF. Arcus Solutions provides travel bonds for its customers to the DRSF as the beneficiary.
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