As of 1 November 2021, tour operators with a turnover in the last completed financial year of at least 10 million euros within the meaning of section 1 no. 2a of the German Act on the Protection against Insolvency by Travel Guarantee Funds (Reisesicherungsfondsgesetz – RSG) are required to conclude a contract of guarantee with the German Travel Guarantee Fund (Deutscher Reisesicherungsfonds GmbH – DRSF). Tour operators with a lower turnover in the last completed financial year can also protect themselves via the DRSF or can ensure protection against insolvency by other means, e.g. by taking out travel insolvency insurance with an insurer. More information about the Travel Guarantee Fund is available in German on the DRSF website.

Insolvency insurance for package holidays is intended to ensure that, in the event of the tour operator’s insolvency, travellers are refunded any advance payments they have made or – if the trip has already begun but cannot continue as planned – are reimbursed for services not received and any expenses required for return transport.

When does travel insolvency insurance cover apply?

This cover usually only applies to package tours, i.e. if you have booked your flight and hotel together as a package. In this case, the tour operator will provide you with an insurance certificate (Sicherungsschein) for package tours after you complete the booking. The insurance certificate must normally be provided to you before any payment, including a deposit or partial payment, is taken or requested.

However, if you book your flight and hotel separately, your payments will not normally be protected by travel insolvency insurance. If the travel provider you have chosen becomes insolvent, you will have to make any claims against the provider yourself.