Travel organizers - FTI-Insolvency: Customers should be compensated by fall
After the bankruptcy of tour operator FTI, affected package tour customers are expected to receive their compensation in the coming months. "The majority of the payouts should be completed by autumn," said a spokesperson of the German Travel Security Fund, which insures package tours. "The compensation process is in preparation and will start soon." The spokesperson did not specify an exact date for the start of the payouts.
According to an analysis of the booking and travel data of the insolvent company, a total of approximately 250,000 package tours were cancelled. In addition, there were around 60,000 package tour customers who were on holiday with FTI at the time of insolvency. Payments that customers had to make on site to continue their trips could now also be reimbursed. The Travel Security Fund did not make any statements about the total amount of compensation payable.
The Travel Security Fund had commissioned other tour operators such as TUI and DER Touristik to care for stranded FTI customers, enabling them to continue their holidays as planned. The costs for this were paid directly by the Fund to the respective tour operators.
Only package tours are covered
FTI, previously the third largest German tour operator after TUI and DER Touristik, filed for insolvency at the beginning of June and cancelled all already booked tours shortly thereafter. Protection through the German Travel Security Fund applies only to payments made for package tours in the event of the tour operator's insolvency. The protection does not apply to individually booked travel components such as pure hotel bookings. There is also no compensation from the Fund for individually booked flights or rental cars.
The German travel industry-organized and Ministry of Justice-supervised Fund was founded after the insolvency of the travel conglomerate Thomas Cook in September 2019. It is responsible for the repayment of customers' advance payments in the event of a travel provider's insolvency, as well as the transport of stranded travellers back and their accommodation until their return.
Only package tours are insured.
- The affected customers of FTI, even those who had additional payments during their journey, can expect to receive their compensation from the Travel Security Fund.
- TUI and other tour operators have been commissioned by the Travel Security Fund to help stranded FTI customers continue their holiday in Berlin, with the costs covered by the Fund.
- Despite FTI's insolvency, Tourism in Germany continues to thrive, with many travel organizers like TUI offering alternative options to tourists.
- The German government, through the Ministry of Justice, has overseen the establishment of the Travel Security Fund, ensuring that package tour customers are protected in case of insolvency.
- In light of the FTI insolvency, discussions about improving the Travel Security Fund to include individually booked travel components have started in the German Parliament, to offer better protection for all travelers.
