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Coronadvice 2 - How to deal with corona-cancellation of packages planned for May and later?
The world has been addressing the topic of coronavirus since the end of January, when the virus first appeared in China. Coronavirus has now spread all over the world. The situation in around the world is changing day by day, hour by hour. Epidemiologists have suggested that the virus could disappear with summer weather. Now, what should a travel agency do when a customer requests a corona-cancellation for a package in May, June, or even September?
Legislation of the package contract stipulates that, as a general rule, the customer may withdraw from the package contract at any time against payment of a reasonable cancellation fee. As we discussed in Coronadvice 1, the customer is not required to pay a cancellation fee if there are extraordinary and unavoidable circumstances prevalent at the place of destination of the package tour, and such circumstances have a significant impact on the provision of the package. For the exemption from the obligation to pay cancellation fees, it is essential that the circumstances affect the provision of the purchased package, and there must be at least some assurance that this will actually be the date for which the customer has purchased the package. At this time, we have no such assurance, but we are confident that hoteliers, airlines, and other businesses around the world will take action at the opportune time. Therefore, at this time, we cannot say exactly when a travel agency is required to refund package prices to Italy scheduled for the beginning of April, May, or beyond.
Therefore, owing to the coronavirus situation, if a customer chooses to withdraw from a package contract starting early May and beyond, this customer will have to pay the travel agency a cancellation. In a future Coronadvice, we will talk about what happens when a customer correctly predicts the situation, and the travel agency will actually have to cancel the planned package in a month or two.
Tomorrow we will talk about whether a travel agency can offer a substitute term, and the pitfalls associated with it, to a customer who is now afraid to travel or really cannot travel.
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Stewarts
'No one has done as much for me as you,' Eva said.
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."
Livingstone, Tour Operator
Thank you again for your valuable advice. I breathe better when I know who to turn to.
Livingstone, Tour Operator
"Thank you again for your valuable advice. I breathe better when I know who to turn to."
Anders Thorsen Advokatanpartsselskab
It has been an absolute pleasure to work with you.
Anders Thorsen Advokatanpartsselskab
"It has been an absolute pleasure to work with you and your colleagues. Your advice and way of handling the matter and our communication has been of the highest quality and we are very happy with the outcome.
If any of my clients need assistance in matters in the Czech Republic in the future, I know who to recommend."