General introduction of travel contact - refreshed in September 2019

1. Legal aspects
of tour
operation
472/2017. Gov. Decree about the travel contract relative to travel
services, in special regard to travel packages and linked travel
arrangement
Refreshed in September 2019
1

2. • 472/2017 Gov Decree
• 213/1996 Gov Decree amended by the
473/2017 Gov. Decree
2019 szept 2

3. New
regulation in
the EU
Directive 2015/2302 of the European Parliament
and of the Council (25/11/2015) on package
travel and linked travel arrangements,
• Member States had to adapt and publish the new
national regulations, by 1 January 2018
• The new rules came in to force on 1 July 2018 in
Hungary
• Common name of this regulation in Europe:
• Package regulation
2019 szept 3

4. What is
regulated by
this decree?
• The requirements of the contract set between
the seller and the buyer (the organiser/trader
and the traveller).
• The range, types and quantity of information,
what must be provided to the customer .
• The timing of information provision .
• The terms and conditions of the contractual
relationship.
2019 szept 4

5. The legal conditions of contractual relationship between the
consumer/customer and the seller are special in the travel industry
• The reasons:
• The travel product is intangible at the moment of the purchase.
• The quality control is the consumption itself.
• Just the information provided by the sellers represent the products at the
moment of the purchase:
• The range, type, quality of information must not depend on the sellers.
5
2019 szept

6. The travel contract in general
2019 szept 6

7. What is the
travel contract?
2019 szept 7
• Travel contract means the agreement linking the
consumer to the organiser or to the retailer, or to
both
• organiser means a trader who
• combines and sells or offers travel
services (packages, linked travel
arrangements), either directly or
through another trader or together with
another trader, or
• transmits the traveller's data to another
trader
• retailer means a trader other than the
organiser who sells or offers for sale travel
services combined by an organiser and signes
contracts on behalf of the organiser

8. The form of the
contract
2019 szept 8
• The travel contract must be prepared in written
form and must be provided to the customer (!) on
paper or durable medium*
*Any instruments which allow the recipient to store the
information (adreessed to him/her) in an unchangeable format.
The information, when stored, must be accessible for as long as
it is relevant to the recipient in order to protect his or her
interests stemming from their relationship with the provider of
the information.

9. Necessity of
travel contract
• Travel contract must be signed every time
when any kind of travel products are sold,
BUT
• There are special conditions for selling
packages
2019 szept 9

10. What is
package travel
contract ?
• It is a contract on the package as a whole or,
if the package is provided under separate
contracts, all contracts covering travel services
included in the package.
2019 szept 10

11. Out of scope of
the package
travel contract
regulation
• Package travel shorter than 24 hours, except of
including one overnight accommodation.
• Occasionnaly created and sold non-profit
based packages.
• Business travel.
• If only one type of services are combined with
another service:
• representing less than 25 % of the value of
the total price and is not a significant part
of the service;
• it is selected after the start of the journey.
2019 szept 11

12. Content of the
travel contract
• The organiser (the retailer) shall
communicate all changes to the pre-
contractual information to the traveller in a
clear, comprehensible and prominent manner
before the conclusion of the package travel
contract.
2019 szept 12

13. Binding requirements of the
package travel contract
- related to the parties;
- related to the financial protection;
- related to the product (package);
- related to the contractual relationship;
- other issues.
2019 szept 13

14. Pre-contractual information
related to the parties
• Identification data of the
parties:
• Seller (organiser, retailer):
• name/address/phone
number/email/fax,
registration number.
• the role of the seller
in the sales process:
(retailer or organiser.
• Traveller:
• name/address/e-mail
address.
14
2019 szept

15. Pre-contractual information
related to financial protection
• The type and the
provider(s) of pecuniary
security.
• The name of the
insurance company
providing the
incolvency protection
(if any).
2019 szept 15

16. Pre-contractual information
related to the travel package
• Characteristics of the
elements of the package.
• Price.
• Payment.
• Minimum number of
participants.
• Passport, visa.
• Travel insurance(s).
2019 szept 16

17. Characteristics of the elements
• the travel destination(s), itinerary and periods
of stay, with dates and, where accommodation
is included, the number of nights included;
• the means, characteristics and categories of
transport,
• the points, dates and time of departure and
return,
• the duration and places of intermediate stops
and transport connections.
Where the exact time is not yet
determined, the organiser (the retailer) shall
inform the traveller of the approximate time of
departure and return;
2019 szept 17

18. Characteristics of the elements to be mentioned in
the travel contract– cont’
• the location, main features and, where
applicable, tourist category of the
accommodation under the rules of the country
of destination;
• the meal plan;
• visits, excursion(s) or other services included in the
total price;
18
2019 szept

19. Characteristics of the elements to be mentioned in
the travel contract – cont’
• where any of the travel services will be
provided to the traveller as part of a group the
approximate size of the group;
• where the travel service is provided in a
foreign language, the language in which those
services will be carried out;
• whether the trip or holiday is generally
suitable for persons with reduced mobility
and, upon the traveller's request, precise
information on the suitability.
2019 szept 19

20. The price to be mentioned in the travel contract
• The total price of the package inclusive of
taxes and all additional fees, charges and other
costs ( where those costs cannot reasonably be
calculated in advance, an indication of the type
of additional costs).
2019 szept 20

21. Payment regulation - to be mentioned in the travel
contract
• Advance/Dawn payment: can not be more
than maximum of 40 % of the total price of the
services (can be more if the organiser has to
pay more to the service provider in advance).
• Remainder: maximum 30 days prior to the
departure.
2019 szept 21

22. Minimum number of participants - to be mentioned
in the travel contract
• The minimum number of participiants needed
for running the tour (and the time-limit for the
possible cancellation if this number is not
reached).
2019 szept 22

23. Passport, visa, health information - to be mentioned
in the travel contract
• General information of passport and visa
requirements which apply for the
Hungarian citizens and health formalities
required for the travel and the stay.
2019 szept 23

24. Insurance(s)’ information - to be mentioned in the
travel contract
• Information on traveller insurance(s): whether
they are inculded or not:
• luggage, sickness and injury insurance;
• cancellation insurance.
2019 szept 24

25. Pre-contractual information
related to contractual relationship
• The right to change
• The right of changes in the
price and the method of
calculation that change.
• Termination.
• The rights and liabilities of
the parties:
• faulty performance
• complaints
• price reduction
• compensation
2019 szept 25

26. Contract changes – basic regulation
• The contract can not be changed by the
organiser unilaterally, only if the contract
specifies that right:
• the organiser may change minor parts without
compensating the traveller;
• the organiser must inform the traveller in a
clear, comprehensible and prominent
manner about the change(s).
2019 szept 26

27. Price change related regulations
• Prices may be increased only if the contract
reserves that right. But if the organiser has the
right to increase the price, the traveller is entitled
to price reduction as well
• The package travel contract shall state how price
revisions are calculated.
• In case of price cut, the organiser has the
right to deduct actual administrative
expenses from the refund. On the traveller's
request, the organiser shall provide proof of
those administrative expenses.
2019 szept 27

28. Price change related regulations – cont’
• Price revisions are to be made solely to allow for
variations in:
• transportation costs (including the cost of
fuel);
• dues, taxes or fees chargeable for services in
contract – such as landing taxes or
embarkation/disembarkation fees at ports and
airports;
• the exchange rates (ROE) applied to the
product.
2019 szept 28

29. Price change related regulations– cont’
• Organiser/seller must inform the traveller about
the change in the prices latest 20 days prior to
the day of departure.
• The change in prices must be well proportioned.
• Information must be provided on
• the calculation method of the price increase
• the reasons.
• The traveller may accept or terminate:
• if accepts – new amendment is needed;
• if terminates:
• change > 8% - no termination fee;
• change < 8% - termination fee.
2019 szept 29

30. Termination related regulations
Termination by the traveller
• Traveller may terminate any time
• With paying termination fee to the organiser
• standard or calculated termination fee.
• Without paying termination fee to the
organiser:
• if the destination is not recommended by
the Ministry of Foreign Affairs;
• if the organiser had to change the contract
significantly :
• price increase is higher than 8%;
• can not provide significant part of the
package.
2019 szept 32

31. Termination related regulations
Termination by the organiser
• Without compensation – just full refund:
• referring to external situation ( e.g. the
Ministry of Foreign Affairs does not
recommend the destination, force, exceptional
unavoidable ciscumstances).
• Same or higher quality substituting
services to the travellers.
• OR : full refund.
• If the substituting service is less expensive
than the original one, the traveller is
entitled to get the difference back.
2019 szept 33

32. Termination related regulations
Termination by the organiser – cont’
• Without compensation – just full refund – cont’:
• in lack of the minimum number of applicants
required:
• 20 days prior to departure if the package is
longer than 6 days;
• 7 days prior to departure if the lengths of
the package is between 2-6 days;
• 24 hours before starting the package if it is
shorter than 2 days;
• In case of certain circumstandes just before
the package starts.
2019 szept 34

33. Termination related regulations
Termination by the organiser - cont’
• With compensation - and full refund:
• If faulty performance of a service affects the
performance of the whole package and the
organiser has failed to remedy the situation
within a reasonable period that had been set
by the traveller, the traveller may terminate
the package travel contract without paying a
termination and should get compensation for
damages.
2019 szept 35

34. The performance of package travel contract
• The organiser is responsible for the
performance of the travel services included in
the package travel contract, irrespective of
whether those services are to be performed by
the organiser or by other travel service providers.
• The traveller shall inform the organiser or the
retailer without delay, if there is any violation of
the contract or parts of the contracts realised.
2019 szept 36

35. The performance of package travel contract
– while an route – cont’
• Where an important part of the travel services
cannot be provided as agreed in the package
travel contract, the organiser shall offer, at no extra
cost to the traveller, suitable alternative
arrangements of equivalent or higher quality, for
the continuation of the package:
• in case of lower quality: appropriate price
reduction;
• the traveller may reject the proposed
alternative arrangements only if they are
not comparable to what was agreed in the
contract or the price reduction granted is
inadequate.
2019 szept 38

36. The performance of package travel contract
- while en route – cont’
• Where faulty performance of a service affects the
performance of the whole package and the
organiser has failed to remedy it within a
reasonable period set by the traveller, the traveller
may terminate the package travel contract without
paying a termination fee and is entitled to get
price reduction and/or compensation for
damages.
• If the package includes the carriage of
passengers, the organiser shall also provide
repatriation of the traveller with equivalent
transport without delay and at no extra cost to
the traveller.
2019 szept 39

37. The performance of package travel contract
– while en route – cont’
• If the organizer can not ensure the return the
travellers because of unavoidable and
extraordinary circumstances, shall bear the cost
of necessary accommodation, if possible of
equivalent category, for a maximum of 3 nights.
• There is no limit in these extra nights for
people with reduced mobility and any person
accompanying them, pregnant women and
unaccompanied minors, as well as persons
in need of specific medical assistance,
2019 szept 40

38. Rights to complaint
• The traveller should complaint immediately:
• the organiser should take actions in an
acceptable period of time, OR the traveller has
the right to do that.
• If the number of travellers getting same services in
the same time, on the same route reaches 15 the
organiser shell provide a licenced guide as tour
leader.
2019 szept 41

39. Price reduction and compensation related regulations
The organiser is liable for damages caused by breaching
the travel contract.
• The traveller is entitled to an appropriate price
reduction for lack of conformity, unless the organiser
proves that it is attributable to the traveller.
• The traveller shall not be entitled to compensation for
damages if the organiser proves that the lack of
conformity is:
• attributable to the traveller;
• attributable to a third party unconnected with
the provision of the travel services;
• due to unavoidable and extraordinary circumstances.
2019 szept 42

40. Price reduction and compensation related regulations
– cont’
• The compensation shall be calculated and paid
by the Civil Law. (Max 300 %)
2019 szept 43

41. Other contract related
issues
• special requests
• documents
• click trough packages
2019 szept 44

42. Special requests
• Information/confirmation on the special
request of the traveller: are they accepted by
the organiser or not.
2019 szept 45

43. Documents
• The organiser must provide all documents,
insurance policies, receipts, detailed
information in acceptable time prior to the
departure
2019 szept 46

44. Contact person
• The name, address, phone number and e-mail
address of the local contact at the destination
2019 szept 47

45. Click trough packages
• The trader(s) to whom the traveller’s data were
transmitted, has to inform the transmitter, that
the contract with the traveller resulting a travel
package had been concluded and has to detail
the services .
2019 szept 48