Background & Purpose
The current system for protecting travelers' money has been complex and costly for companies to manage. There was a need to simplify the process while ensuring that travelers get their money back more reliably.
The Decision
The Swedish parliament decided to create a new collective fund for travel guarantees, which will provide stronger financial protection for travelers and clearer rules for refunds.
Does this affect you?
- Travelers: They get a safer financial protection for their trips, ensuring they can get refunds even in complex bankruptcy situations.
- Travel agencies: They will pay into a collective fund, which over time reduces the need for them to manage expensive individual financial guarantees.
- Credit card companies: They gain the legal right to claim reimbursement from the travel guarantee fund if they have already compensated a customer for a failed trip.
In Practice
- Travel companies will pay a fee into a new shared collective fund.
- Individual financial guarantees for travel companies will decrease as the collective fund grows.
- Travelers can get compensation even if they previously received a voucher that became worthless due to a company bankruptcy.
- Credit card companies can now claim money from the fund if they have already paid back a customer for a cancelled trip.