Tourism Law in Europe

11 6 TOURISM LAW IN EUROPE II.1. Travel Agency The concept of a “travel agency” (cestovní kancelář, in Czech, also tour operator or organiser in English), the conditions for its establishment and its basic duties are laid down by the Tourism Act. Further regulations crucial for the travel agencies’ operation include the Trade Act and the Government regulations specifying the contents of individual trades. The name of the relevant concession trade is “operating a travel agency – organisation of package travels – brokering linked travel arrangements”. The operation of a travel agency comprises two fields of business: the organisation of package travels, which is the traditional one, and the other, introduced by Amendment No. 111/2018 Coll., amending Act No. 159/1999 Coll., which is allowing a travel agency to broker linked travel arrangements. A travel agency is thus authorised to organise, offer and sell package travels and act as an intermediary for linked travel arrangements. Furthermore, it can perform all activities that may be carried out by a travel services intermediary (in Czech: cestovní agentura), such as the separate sales of accommodation and airline tickets. Linked travel arrangements, as the name suggests, are two or more different types of tourism services purchased for the same trip or holiday. They do not constitute a package travel agreement, instead separate contracts are concluded with individual travel service providers. This definition was adopted, essentially word-by-word, from Directive (EU) 2015/2302 of the European Parliament and of the Council of 25 November 2015 on package 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 the “Directive”). A licence to operate a travel agency may be granted to a person who meets both general and special conditions for the trade operation and encloses with his or her application:  a counterpart of a contract with an insurance company covering potential insolvency, applicable terms and conditions of insurance, a proof of payment of the premiums and deductible, if agreed, or a counterpart of a bank guarantee;  a copy of the confirmation of paying the annual contribution to the Guarantee Fund; and  a business plan.

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