On 1 January 2019, the Act No. 170/2018 Coll., on tours, linked travel arrangements and certain business conditions in tourism, (hereinafter referred to as the "New Act on Tours") enters into force. The reason for the new legislation in the field of providing travel services is the implementation of Directive (EU) 2015/2302 of the European Parliament and of the Council of 25 November 2015 on packages concerning travel and linked travel arrangements, amending Regulation (EC) No. 2006/2004 and Directive 2011/83/EU of the European Parliament and of the Council and repealing Council Directive 90/314/EEC (hereinafter referred to as the "Directive"). The Directive replaced the Council Directive from 13 June 1990 on package travel, package holidays and package tours (90/314/EEC), which was implemented to the Act no. 281/2001 Coll., on tours, the conditions of business of travel agencies and amending the Civil Code as amended, which was repealed and replaced by the New Act on Tours. The main purpose of the New Act on Tours is to increase the level of protection for travellers by the purchase of tours and linked travel arrangements as well as to enhance the transparency and legal certainty of traders.

New definitions and new subjects

As a result of the market development in the field of selling travel services, as well as the formation of new possible ways of selling travel services falling within the "grey area" or if they are not covered by current legislation, the New Act on Tours introduces a new dynamic definition of "linked travel arrangements." However, the definition of tour is quite narrow. In relation to the regulation of new ways of selling travel services, a number of subjects, which must adapt to the new legislation, are being extensively expanded.

Activities consisting in the provision of travel services that meet the characteristics of the definition of a tour or of the linked travel arrangements can be carried out only in the position of a travel agency and solely on the basis of an issued trade license. Thus, in addition to the current travel agencies, airlines, accommodation facilities or motor vehicle renters will have to obtain a trade license.

Insurance against bankruptcy

The obligation of the travel agencies will be to provide protection in the event of bankruptcy, which can be secured by way of insurance or bank guarantee in such an amount as to ensure that all claims of travelers are met in the event of bankruptcy. The minimum protection threshold for bankruptcy will increase to 30% of the annual planned revenue from sales of tours and linked travel arrangements.

Information obligations of traders and rights of travellers

In relation to the obligation to provide protection in the event of bankruptcy, information obligations to the financial institutions will increase. The information obligations to travellers are also strengthened. Furthermore, the New Act on Tours sets out in detail the possibility of changing the agreement on tour before commencing a tour, e.g. the change in the price or the assignment of an agreement on tour. In the event of a travel agency's breach of the agreement on tour, the travellers will have the right to compensation for both material and non-material damage, in addition to the right to alternative travel services and the right to a price reduction.

Additionally, the Slovak Trade Inspection has to maintain a list of travel agencies, which should contribute to a better overview of the travel services market.

Impact on the business environment

The New Act on Tours brings, in addition to positive (strengthening consumer protection), a number of negative impacts on the business environment. It will introduce a large number of new obligations, which are mostly administrative in nature thus represent increased costs for traders. The negative impact can be attributed to the transfer of these increased costs for the traders in the final cost of a tour.