Motel Agency is one of the few agencies in Norway that specializes in both events and travel, at home and abroad. In order for us to be able to arrange company trips, we are required to be a member of the Travel Guarantee Fund by the Package Travel Act. The purpose of the fund is to ensure that consumers who have bought a package tour from the fund's members will not suffer financial losses and / or be stranded at the destination if the company that sold the package tour goes bankrupt. Organizers provide an individual guarantee as security for liability in accordance with the guarantee rules in the Package Travel Act. The guarantee depends on the organizer's obligatory turnover. Regardless of the size of the guarantee, the Travel Guarantee Fund will fully cover the traveler's requirements under the law.
We spoke with the Travel Guarantee Fund to get answers to some of the most common questions we and our customers have about the Travel Guarantee Fund:
What is a package tour?
A typical package tour consists of at least two of the following travel services:
Transport: Air, bus, train, ferry, etc.
Accommodation: Hotel, youth hostel, cabin rental, etc.
Tourist attractions: Tickets for football matches, concerts, theater, green fees, ski passes, spa treatment, yoga etc. (unless these services are included as part of a larger package, they must represent at least 25% of the package price or be of significant importance for the trip to take place)
Car rental: Rental of car, motorhome, large motorcycle, etc.
The organizer who offers package tours is responsible for ensuring that the package tour in its entirety is carried out as planned and provides a travel guarantee for the entire package.
What is our client bankruptcy protection policy?
All companies that have provided a travel guarantee will be listed on RGF's website. If you have booked a package tour with a package tour operator who is a member of the Travel Guarantee Fund, it means that you as a traveler have bankruptcy protection. In practice, this means that you will be reimbursed the amount of money you have paid in advance (deposit, or final severance pay) and that the return journey will be covered if the company goes bankrupt after the start of the trip. The scheme does not apply if you have only purchased a scheduled flight ticket or only hotel accommodation. This also does not apply if you have made protection purchases for yourself in fear that the company will go bankrupt.
What happens if you have booked a trip from an organizer who has not provided a guarantee?
This means that you are not covered under the travel guarantee scheme if the organizer goes bankrupt. If the trip is canceled as a result of the organizer lacking money to complete the trip, the deposit has been lost.
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If a company is to arrange a corporate trip, it is important to choose a safe organizer who is a member of the Travel Guarantee Fund and has provided an individual guarantee as security for liability in accordance with the guarantee rules of the Package Travel Act. Anyone who has purchased a package tour from an agency that has provided a travel guarantee can demand a refund from the Travel Guarantee Fund if the trip is canceled as a result of bankruptcy or composition with the organizer. Contact the Travel Guarantee Fund if you are unsure of the rules of this scheme or have more questions.
Motel Agency AS is a member of the Travel Guarantee Fund and the Package Travel Act applies to our events abroad. Contact us if you would like good ideas for your next company trip.
