Package Travel Business

Only entrepreneurs registered in the register of travel agents can engage in package travel business. The register is upheld by the Finnish Competition and Consumer Authority. Essential requirements for registration are that the travel agency has provided the Consumer Agency with collateral in case of insolvency to sufficiently cover costs caused by package travel.

Package travel is regularly paid in advance. The collateral must secure return transport for travellers, their accommodation at the destination until the return journey, reimbursement for any advance payments made by consumers should the trip be cancelled, or the amount corresponding the latter part of the trip should the trip be interrupted.

Legislation

The registration of an entrepreneur of a travel agency, securities to cover the event of insolvency and regulatory control concerning entrepreneurs of travel agencies are laid down in the Travel Agency Act (939/2008) for which the MEAE is responsible.

The Package Travel Act (1079/1994) pertains to the marketing of package travel and contracts relating to package travel. The Act comes under the area of responsibility of the Ministry of Justice.

‘Package travel’ means the pre-arranged combination of tourist services offered at an inclusive price, including transport and/or accommodation with some other tourist service significant to the package.

The Act is applicable only when the travel is provided by an entrepreneur organising or supplying the travel in return for payment, other than occasionally, and when the travel covers a period of more than 24 hours or includes overnight accommodation.

Under the Travel Agency Act, ‘engaging in travel agency activities’ means organising, offering or supplying package travel falling under the scope of the Package Travel Act. The definition of package travel in the Package Travel Act therefore also restricts the scope of the Travel Agency Act.

Further information: tuomo.knuuti(at)tem.fi