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Coronadvice 3 - Can a travel agency offer a change of a term or other agreement?
The world is introducing more and more restrictive measures in response to the coronavirus pandemic. In the Czech Republic, a state of emergency has been declared- we are prohibited from travelling to risk areas, schools have been closed, events with over 30 people have been banned, restaurants and other services such as gyms and wellness centres have been closed. Similar measures are also gradually being introduced in other countries. As a result of these restrictions, the demand for packaged tourism is expected to shrink considerably in the near future. Thus, travel agencies will have to cancel a lot of package tours, unless their customers have already cancelled their contracts because of fear or inability to travel.
As we have already explained in Coronadvice 1, there is only one situation in which the customer is clearly entitled to a refund of the travel price paid. In Coronadvice 2 we explained that this situation should be present at the time for which the tour is planned, and hence for May and later tours to Italy, at this time, the customer will have to pay a cancellation fee to the travel agency when cancelling the contract. In future Coronadvice, we will certainly look into situations that are unclear in terms of who bears the effects of travel restrictions issued by the Government of the Czech Republic and other states.
Amongst all this uncertainty, today, we bring some good news: "An agreement between a travel agency and its customer is always possible." The agreement makes it possible to disregard who is legally entitled, and is therefore particularly suitable in situations of dispute.
Therefore, practically speaking, the travel agency and the customer can mutually agree to resolve the situation by agreeing on, for example, changing the date of the trip. It is also possible to agree on a change of tour destination, i.e. applying the paid funds to the payment for another tour. Discounts on the purchase of a future tour are also possible. If the agreement is a tool to resolve the disputed situation, we refer to it as a settlement agreement, and its details need to be captured at least in email or other electronic communications. It is also possible to prepare one sample text and use it in communication with customers.
We have come across cases where customers have been afraid of entering into an agreement because of concerns about the bankruptcy of a travel agent and the loss of their funds. At this point we would like to inform customers that all travel agencies are insured against bankruptcy, i.e. in such a situation, the customers will certainly get their money back.
In the next article, we will talk about how to proceed with clients who have previously been charged for travel cancellations, but later it turns out that the package tour really cannot be realized.
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Jasper Brinkman
Jasper Brinkman
"Following a devastating hotel fire in Prague, the law firm Holubová advokáti, led by attorney Klara Dvorakova, successfully represented our extended family as a group of victims. The firm navigated complex international insurance and compensation laws to defend our rights.
I would like to acknowledge the extraordinary efforts the firm had to make to bring our case to a successful compensation under extremely difficult circumstances."
Stewarts
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."