Are You Selling Package Holidays Without a Licence? Unauthorised Business in Tourism May Constitute a Criminal Offence

Are you operating in the tourism sector and offering customers a combination of accommodation, transport, programmes, tickets, guiding services, or other travel-related services? If so, it is essential to ask a fundamental question: could this, in substance, already constitute a package holiday that may only be organised by a licensed tour operator?

A misjudgement of this boundary may lead not only to regulatory issues but, in more serious cases, to criminal liability for unauthorised business activity.

When a Tourism Business May Unintentionally Be Selling Package Holidays

This risk does not concern only traditional travel agencies. It may also arise for other businesses operating in or adjacent to the tourism sector, such as organisers of retreats, themed weekends, sporting and educational events, accommodation providers, or entities assembling packages of multiple services for customers.

In practice, the key issue is often whether a particular offer constitutes:

• standalone individual travel services,
• mere intermediary activity, or
• a package holiday within the meaning of applicable legislation.

What matters is not the label of the product, but its actual substance, the manner in which it is offered, and the economic reality of the transaction. A business cannot eliminate risk simply by avoiding terms such as “package”, “bundle”, or “stay”. Each arrangement must be assessed on its specific structure. Dividing the product into multiple contracts with different suppliers does not resolve the issue.

Supreme Court Judgment: Unauthorised Organisation of Package Holidays Resulted in Conviction

A recent decision of the Supreme Court serves as a reminder that the line between lawful business activity and criminal risk in the tourism sector can be easily crossed.

In the case in question, the operator of a travel agency was convicted of continuously offering and selling combinations of services classified as package holidays without holding a tour operator licence. According to the court’s findings, the activity exceeded CZK 500,000 in value and was carried out over approximately one and a half years.

In addition, some customers were not refunded for cancelled trips, and in certain instances, the services provided were of a lesser scope than agreed.

The individual received a suspended custodial sentence of three years. The legal entity operating the travel agency was also convicted and banned from carrying out its activities for fourteen months. The courts further ordered partial compensation for damages.

When Selling Package Holidays Without a Licence May Constitute a Criminal Offence

Unauthorised business activity does not necessarily end with an administrative fine. Where such activity is carried out on a larger scale, it may constitute a criminal offence under Section 251 of the Criminal Code. In more serious cases, the law provides for imprisonment of up to eight years.

From the judgment, courts must assess:

• whether the offered combination of services constitutes a package holiday,
• whether the business acts as an organiser or merely as an intermediary,
• the duration of the activity,
• the financial scale, and
• the impact on customers.

The continuity, duration, and financial volume of the activity are often decisive in determining whether the matter amounts to a criminal offence rather than a mere administrative infringement.

It Is Not Enough to Rely on the Absence of Regulatory Enforcement

Businesses sometimes underestimate the risk on the assumption that trade licensing authorities do not routinely pursue such cases or that no inspection has yet taken place. However, this does not mean that the activity is legally compliant.

A criminal complaint may be filed by anyone. Law enforcement authorities may then investigate independently. The judgment demonstrates that the issue need not arise only from a specialised regulatory inspection; it may also be triggered by a customer, competitor, or other third party.

Do I Need a Tour Operator Licence? It Depends on the Business Model

If a particular product meets the criteria of a package holiday, its organisation is reserved exclusively for licensed tour operators. An incorrect assessment may give rise to liability not only for the individual entrepreneur but also for the company through which the activity is conducted.

Determining whether a specific product constitutes a package holiday is a typical legal question we address at Holubová advokáti. We assess service packages, contractual arrangements, marketing presentations, booking processes, and the allocation of roles between the parties involved.

ACK ČR Brochure on Unauthorised Business Activity

We also recommend the brochure of the Association of Travel Agencies of the Czech Republic (ACK ČR) called “Unauthorised Business Activity”, which clearly explains what constitutes permissible activity and when the risk of unauthorised business arises. We participated in its preparation.

The brochure is available on the ACK ČR website. The association also assists its members in navigating the legal and practical complexities of operating travel agencies and tour operators.

Unsure Whether You Are Selling a Package Holiday?

If you operate in the tourism sector and offer customers combinations of services, we recommend assessing whether your product constitutes a package holiday or another regulated service model. Common questions include:

Is a combination of accommodation and a programme a package holiday?
It may be. The decisive factors are the specific structure of the offer, the integration of services, and how the product is sold to the customer.

Can a travel agency sell its own package holidays?
No. A travel agency may act as an intermediary, but the organisation of package holidays is reserved for licensed tour operators.

When does the risk of unauthorised business activity arise?
When a person without the required authorisation systematically carries out activities reserved for tour operators or other regulated professions.

Can themed stays, sports or cultural events, children’s camps, singles’ retreats or hobby-based trips qualify as package holidays?
Yes, if they are combined with accommodation, transport, or other travel services. It is precisely in such models that the boundary between standalone services and package holidays is often tested.

Holubová advokáti provide specialised legal advice to businesses in the tourism sector. We will assess whether your service constitutes a package holiday, whether a tour operator licence is required, and how to structure your business model in compliance with legal requirements. We can also assist with establishing a tour operator business and prepare all contractual documentation for both B2C and B2B relationships. Do not hesitate to contact us.