What can tourists affected by the inability to pay the agency from which they bought the stays

The Cocktail Holidays scandal has brought to attention the need to protect tourists who pay the stay with good faith and wake up that, because of the agency, they can no longer enjoy it. The specialists consulting “Adevărul” explained what to do in such situations.

Cocktail Holidays scandal brought to attention the need to protect tourists

When a travel agency is unable to pay, tourists are protected by law. Art. 18 points (1) of the GO no. 2/2018 obliges the organizers of tourist packages to constitute a financial guarantee – either insurance policy or a letter of bank guarantee, or other tool accepted by law. This guarantee has two essential purposes: to cover the costs of repatriation when tourists are stuck abroad and to ensure the reimbursement of money for the services not due to insolvency, he told “truth“Octavian Georgescu, partner, VGA Lawyers.

“Basically, no organizer can work legally without such a safety net, and art. 20 points (1) of the same ordinance stipulates that the proof of establishing this guarantee is a mandatory condition for obtaining the operating license”added Georgescu.

Damage recovery notifications should be submitted as soon as possible

In practice, for the recovery of damages, tourists must gather all the documents (contract, receipts, vouchers), identify the guarantor mentioned in the contract and send the notification to both the agency and the guarantor.

“The notifications regarding the recovery of the damages must be submitted as soon as possible, the law provides for deadlines for submission, after which this right can no longer be used in this way. Also, consumers can address the ANPC or the court for the recovery of the entire injury, including moral damages if necessary.

On the other hand, in terms of agencies, they should regularly review the level of guarantees and be more transparent to customers to avoid critical situations. Problems of this type most often occur due to lack of preventive legal assistance, which could anticipate risks and provide solutions before they turn into image or financial crises“, Explained lawyer Octavian Georgescu.

Legislation with good intentions but with short legs

“For tourists, the bankruptcy of a travel agency does not mean only the loss of the holiday, but also a bitter lesson about how thin the safety net is. From a summer dream you wake up, overnight, a creditor in an insolvency procedure,” says Victor Buju, lawyer at Buju Stanciu & Asociaţii.

At European level, things seem simple. “The Directive (EU) 2015/2302 guarantees that tourists do not remain discovered in case of insolvency. Romania transposed these rules through the GO no. 2/2018, which obliges the agencies to have insurance policies, bank guarantee letters and other tools meant to ensure the reimbursement of money and repatriation. The problem is that these mechanisms exist only on paper for many tourists. It is hard to work hard, the procedure is bushy, and the man who paid the holiday in the savings does not know who to address and in what order ”explains Denisa Iasmine, parallel to the same company.

In addition, Romania seems to have a special talent in making administrative improvisations: the guarantee fund created by law in 2017 was abandoned after only a few years, leaving tourists to rely more on luck than institutions.

Tourist's rights- from repatriation to credible meal

A injured tourist is not just an “unfortunate client”. From the moment the agency goes into insolvency, he becomes a creditor with guaranteed rights:

i. He has the right to activate the insolvency policy and to request the reimbursement of paid amounts.

II. It can request free repatriation and, if necessary, accommodation until they return.

III. Has the right to rapid and suitable damages for the damages suffered.

IV. It can be registered at the credit mass, where, unlike other creditors, they benefit from priority.

“It is important for the tourist to act immediately: notify the insurer, to collect the payment documents and to register in time in the insolvency procedure. Otherwise it risks adding to a lost vacation and a lost process”, Victor Buju draws attention.

Cocktail Holidays and Kusadasi: Reality on the ground

In the case of Cocktail Holidays (2024), over 600 Romanian tourists remained abroad and were repatriated by the state's intervention. The ANAT president warned then that the lack of a national guarantee fund leaves unprotected customers.

In the case of Kusadasi SRL (2023), the Ministry of Economy withdrew the Agency's license after it had sold travel packages whose value exceeded the insolvency policy. Only after the official declaration of the insolvency could the guarantees be accessed.

“These episodes show that between the letter of the law and the practice of the field there is a goal of confidence. The tourist thinks it is 100%protected, but in reality he discovers that the protection is fragmented, bureaucratic and sometimes insufficient.”explains Denisa Iasmine.

What should we do

Romania needs more than isolated policies and symbolic guarantees. “Our tourism sometimes resembles a five -star hotel built on moving sands: the architecture is spectacular, but the foundation is missing. When the wave of insolvency comes, the whole building collapses over tourists ”says Victor Buju.

The solution is clear: a national functional and transparent guarantee fund, which fully covers the damages and eliminate the improvisation. Until then, the responsibility also moves on the consumer's shoulders:

• to verify the Agency's license,

• to explicitly ask about the value of the insolvency policy,

• to follow the official warnings of the ANAT or the Ministry of Economy.

“The holiday should not be an empty jump. Before you take your flight to your destination, it would be good to check if the agency has a safety net“Recommends Denisa Iasmin.

The conclusion of the specialists is that, finally, the Romanian tourist has clear and guaranteed rights. “But, as often happens to us, rights must be defended with insistence.

If the state were treating tourism as an economic engine, with clear rules and functional protective mechanisms, we could talk about a Romania that attracts, not that repatriates its emergency tourists. It takes to encourage investments, legislative stability and a framework in which Holidays to mean memorable experiences, not insolvency files“say lawyers from Buju Stanciu and associations.