On 3 June, the travel industry in the Netherlands came to a standstill again when it was announced that the German FTI had filed for bankruptcy.
Germany’s third-largest tour operator (for the time being?) stopped further travel operations, which also caused problems for travelers and travel agents in the Netherlands, especially at the beginning of the holiday season.
At first, only trips were canceled until July 5, causing problems for travelers and travel agents if they wanted to book new trips for after this date.
FTI’s trustee also claimed payment of the travel sums while it was not clear whether another trip was being carried out.
Travellers in the Netherlands, who had booked through a Dutch travel agent, had already paid for part or all of their travel to their travel agent.
FTI’s trustee insisted on payment and the Dutch travel agent was caught between client and trustee.
It was clear from the outset, partly due to the loss of trust among accommodation suppliers, that FTI would go bankrupt.
So why leave travellers and travel agents in limbo and insist on payment of the remaining travel sum?
As FTI’s trustee did (or still does).
Now that the package travel directive is being tinkered with, Brussels must face up to this problem, which is more common in bankruptcies, and strengthen the position of consumers in this regard.
This can be done in various ways.
One of these is to include the legal rule that was in Dutch law until 1 July 2018 in the new Package Travel Directive.
Our law stated that a trader (travel agent) who sells a package holiday from a tour operator not established in the Netherlands is regarded as a tour operator.
Such a rule gives the consumer the best possible protection in the event of bankruptcy of a tour operator not established in the Netherlands, but will most likely be found to be contrary to the free movement of services.
Another possibility is to oblige administrators or trustees of companies that are in financial difficulties (have applied for bankruptcy or suspension of payments) to provide clarity within three working days whether the trips are being carried out and to prohibit them from collecting travel sums if no security for compliance is provided.
The traveller and on their behalf the travel agent with whom the booking has been made must then be given the right to cancel the trip free of charge on behalf of the traveller.
The current practice whereby trustees only hunt to get as much money as possible into the estate at the expense of everyone must be stopped in any case. Mr.. Nick A. de Leeuw Travel Law Expert
