Package Holidays and Travel Trade Act 1995

Security requirements in the event of insolvency.

22

F35[22. (1) An organiser shall provide security in accordance with the requirements specified in this section and sections 23 to 25 for the refund of all payments made to the organiser by or on behalf of travellers where the travel services included in the package travel contract are not, or will not be, performed by the organiser as a consequence of the insolvency of the organiser.

(2) Where the carriage of passengers is included in a package travel contract, an organiser shall ensure that the security referred to in subsection (1) shall also provide for the costs of the repatriation of travellers in the circumstances referred to in that subsection.

(3) Where the travel services included in the package travel contract are not, or will not be, performed by the organiser as a consequence of the insolvency of the organiser, the continuation of the package, on the same contractual terms, may be offered to the traveller as an alternative to a refund by—

(i) another organiser,

(ii) an entity providing the security for the insolvent organiser, or

(iii) the entity responsible for the administration of the security provided by the insolvent organiser.

(4) Where the performance of the package is affected by the insolvency of an organiser, the security referred to in subsection (1) shall ensure repatriations and, if necessary, the financing of accommodation prior to the repatriation, or the continuation of the package shall be available to travellers at no cost to the traveller.

(5) Where a travel service included in a package travel contract has not been performed due to the insolvency of the organiser, the security referred to in subsection (1) shall provide for refunds to travellers of the costs of the package travel contract without undue delay after the traveller’s request.

(6) The security referred to in subsection (1) shall be effective and provide for reasonably foreseeable costs including in particular—

(a) that it shall be available as soon as travel services are not being, or will not be, fully performed, or where service providers require travellers to pay for them, as a consequence of the insolvency of an organiser, and

(b) the amounts of payments affected by the insolvency of the organiser made by or on behalf of travellers in respect of packages, taking into account the length of the period between down payments and final payments and the completion of the packages, as well as the estimated cost for repatriations in the event of the insolvency of an organiser.

(7) The security referred to in subsection (1) shall be provided in respect of all packages an organiser sells or offers for sale in the European Union, irrespective of the traveller’s place of residence, the place of departure or where the package is sold.

(8) Where an organiser is not established in the State or in another Member State and sells or offers for sale packages in the State, or by any means directs the sale or offers for sale of such packages to a person in the State, the organiser shall provide security in accordance with subsection (1) in respect of those packages.

(9) An organiser established in another Member State who sells or offers for sale packages in the State and who provides security in accordance with the law of that Member State giving effect to Article 17 of the Directive in that Member State shall be considered to have complied with the requirement to provide security in accordance with subsection (1).

(10) An organiser shall inform the Commission for Aviation Regulation of the nature and amount of the security the organiser has arranged in order to comply with subsection (1).

(11) An organiser who fails to provide security in accordance with subsection (1) or (8), as the case may require, shall be guilty of an offence.

(12) In this section “organiser” means, other than in subsection (8), (9) or (10), an organiser established in the State.]

Annotations:

Amendments:

F35

Substituted (11.03.2019) by European Union (Package Travel And Linked Travel Arrangements) Regulations 2019 (S.I. No. 80 of 2019), reg. 18.

Editorial Notes:

E12

Previous affecting provision: subss. (2)(b), (3) substituted (27.07.2014) by State Airports (Shannon Group) Act 2014 (27/2014), s. 55(c)(i), (ii), commenced on enactment; section substituted as per F-note above.