CZECH REPUBLIC | KLÁRA DVOŘÁKOVÁ 11 7 The existence of professional qualifications is a special precondition for the operation of a travel agency. This prerequisite is proved through an appointed professional representative. During its existence, a travel agency is required to have security in place covering potential insolvency and to pay annual contributions to the Guarantee Fund. The former may consist either in insolvency insurance or a bank guarantee covering insolvency, with travel agencies currently preferring the option of taking out insurance5. A special regulation has been enacted for foreign travel agencies offering package travels in the Czech Republic. The Tourism Act also understands as a travel agency a person who has the registered office or place of business in another EU or European Economic Area (EEA) Member State at the time of execution of the relevant package travel contract or brokering linked travel arrangements; provided that the given person’s activities are directed towards the Czech Republic in some way, including online sales. Such a travel agency – if it does not wish to establish a branch in the Czech Republic – may operate a business in the Czech Republic based on an authorisation to operate a travel agency issued by the country of establishment provided that it meets the conditions laid down by the country of establishment in case of insolvency. These foreign travel agencies need not obtain a licence for the operation of a travel agency in the Czech Republic. II.2. Travel Services Intermediary The concept of a “travel services intermediary” (in Czech: cestovní agentura, in English also travel agent), the conditions for its establishment and its basic duties are laid down by the Tourism Act. Further regulations crucial for the operation of travel services intermediaries include the Trade Act and Government regulations specifying the individual trades’ contents. The name of the relevant field of unqualified trade is “operation of a travel services intermediary and tour guide activities”. A trade licence for the operation of a travel services intermediary may be granted to anyone who meets the general conditions for the operation of a trade, i.e. the conditions of clean criminal record and legal capacity, with no other prerequisites required. 5 On how the Czech Republic implemented the duties laid down by the Directive concerning security, cf. Dvořáková, K. Transposition of the Package Travel Directive in the Czech Republic in Torres, C. et al. (eds.). Collective Commentary about the New Package Travel Directive. ESHTE, 2020, p. 743, available in: http://intranet.eshte.pt/collectivecommentary/743/ [retrieved on 2020-02-15].
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