Insolvency Protection
The Irish Aviation Authority (IAA) administers the scheme of insolvency protection in Ireland. It is the Central contact point in Europe for Ireland.
What is insolvency protection?
For Packages and Linked Travel Arrangements, an organiser shall provide security in accordance with the requirements specified in Section 22 and sections 23 to 25 of Package Holidays and Travel trade Act, 1995 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. Where the carriage of passengers is included in a package travel contract, an organiser shall ensure that the security shall also provide for the costs of the repatriation of travellers.
For travel only sales, a travel agent or tour operator shall provide security in accordance with SI 102 1983 Tour Operators and Travel Agents (Bonding) Regulations 1983.
What needs to be covered by insolvency protection?
- Revenue from overseas travel contracts if you are a travel agent or tour operator established in Ireland (including travel only). You can choose to be licensed for this part of your business or you can provide evidence of security if this Revenue relates to packages. You must be licensed for travel only sales where the travel commences in Ireland. If your bond is insufficient then recourse to the Travellers’ Protection Fund is available for licensed sales.
- Revenue from travel inclusive packages sold/for sale in the European Union where the travel commences outside of Ireland. You cannot be licensed for this part of your business.
- Revenue from linked travel arrangements sold/for sale in the European Union. You cannot be licensed for this part of your business.
What does not need to be covered by insolvency protection?
Certain types of sales do not need to be covered by insolvency protection. These are:
- Packages and Linked Travel Arrangements covering a period of less than 24 hours unless overnight accommodation is included;
- Packages offered for sale, and Linked Travel Arrangements facilitated, occasionally and on a not-for-profit basis, and only to/for a limited group of travellers; and
- Packages and Linked Travel Arrangements purchased on the basis of a general agreement for the arrangement of business travel between a trader and another natural or legal person who is acting for purposes relating to his trade, business, craft or profession. Flight only is not an exclusion.
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