Three questions with Christoph Debus on the German Travel Security Fund (DRSF)

First of all, I want to emphasize that the DRSF works! The fund was set up in 2021 to create a system of insolvency protection in accordance with EU legal requirements. Travelers are therefore protected in the event of the travel provider’s insolvency, for example by covering outstanding costs for the hotel or airline. The FTI insolvency last year proved this impressively; there were no images of stranded package tour holidaymakers as with the Thomas Cook insolvency in 2019. In most cases, guests were even able to complete their vacation as normal – because the fund takes effect in such cases.

As of September 1, these fees will now be reduced by 0.25 percent from 1 percent of the revenue subject to insurance and to a total of 0.5 percent as of November 1. This is only possible because the fund is very well filled – despite the insolvency of FTI. This stability is important and now provides the necessary leeway for this financial relief for tour operators. Ultimately, package tours can be strengthened as the safest travel product and remain competitive in terms of price. This benefits everyone – consumers and tour operators – which is why this decision is so important.

I very much welcome the fact that the German Travel Security Fund sees the reduction in fees itself as a first step towards further development and is striving for further practical improvements and adjustments to the legal framework. As the targeted fund assets will be fully paid up in the foreseeable future, it will then also be necessary to reduce the fees to be paid by tour operators to zero percent. Package travelers would still be protected because the existing fund assets would be fully paid in and secured. It is also crucial that the concept of security deposits, which are also provided by tour operators as part of the DRSF, is reformed quickly. Otherwise, I fear that the positive effects hoped for with the reduction in fees may not fully materialize.

Ultimately, the comprehensive protective measures and safeguards for package tours only work if the product is also booked by customers. To achieve this, the package tour must remain competitive compared to other travel services – also in terms of price.

We must not forget: We are operating in an enormously price-transparent market. The Package Travel Directive is currently being amended at EU level. It is therefore crucial that the reform does not result in any additional, cost-intensive requirements. We are very critical of some of the changes being discussed – particularly with regard to cancellation rules and restrictions on the sales department for so-called linked travel arrangements. The trilogue negotiations between the EU Commission, Council and Parliament began in the fall. The German government must play a major role in the negotiations – after all, over 40 percent of all package tours sold in the EU are booked in Germany. Incidentally, customer satisfaction speaks for itself here, as it is over 90 percent.