Company insolvency in the travel and tourism sector across the EU could become easier, following the news that the European Commission is acting to cut red tape in the industry.
The Commission explains that some regulations that currently govern travel agencies and package tour operators are outdated in the modern market.
Among them are rules relating to printed brochures which were drawn up in the 1990s when online bookings had not yet developed.
“In the 1990s, most Europeans picked out a prearranged package deal from a brochure and booked it at their local travel agent,” says EU justice commissioner and Commission vice-president Viviane Reding.
Now, however, more people book online – and potentially place bookings directly with operators in other EU member states.
Where previously companies were required to ensure that their national insolvency protection schemes were recognised in other EU countries, this demand is now being removed.
The current proposal includes plans to provide “EU-wide rules on information, liability and mutual recognition of national insolvency protection schemes, thus facilitating cross-border trade”.
For package tour operators that find themselves in an untenable financial situation, this should also make company insolvency an easier option, without the worry that customers elsewhere in Europe will be adversely affected.