The European Commission authorised on Friday 31 July a German support of €840 million to cover vouchers issued by travel operators for package holidays booked before 8 March 2020 which have been cancelled.
In Germany, at the end of April, package holidays totalling €6 billion booked before 8 March were still unresolved. For a large part of the cancelled reservations, the operators refunded the customers. Nevertheless, they will have to issue secured vouchers for a total amount of €1.5 billion to compensate customers for the remaining cancelled package tours.
Through this scheme, the German State intends to ensure that any traveller accepting a voucher issued by a travel operator will be able to either use it or be fully reimbursed. Vouchers will be valid until 31 December 2021. If they are not used before this date, the amount paid will be fully refunded to the customers. The support aims to: – to protect consumers, to ensure the effective settlement of related refunds to travellers, and to alleviate liquidity pressure in the travel industry by encouraging the use of vouchers rather than direct refunds. In return, travel operators will pay a premium to the German State. (Original version in French by Lionel Changeur)