Is money invested in travel bookings safe from bankruptcy?

Here you will find the right answers

About Moneyland Forum

The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.

Show categories

Please login in or sign up to participate in the forum.
 
avatar
  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

As a self-confessed penny pincher, I try to book travel as early as possible to avoid cost hikes. I will finally be going on a once-in-a-lifetime trip round the world after many years of saving for this. The cost is over 40,000 francs.

I would like to book the whole trip well in advance (6 months to 1 year before traveling) to save on money and just to have peace of mind knowing it's all sorted so I can be relaxed ahead of the trip.

My question is: Is the money I pay for airline, event and cruise tickets, hotel and rental car bookings, and other travel bookings guaranteed somehow? What happens if one of the operators involved goes bankrupt in the meantime? Will I get my money back?

I'd appreciate any feedback you can offer. Thanks.

 
avatar
  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4079

Hi there,

Swiss rules governing travel packages organized by professional travel agents or agencies dictates that organizers must reimburse travelers in full if insolvency or bankruptcy prevents them from providing the paid-for services. You can find these rules here.

However, these rules only apply to packaged travel deals (flights and hotel stays booked through the same travel agency, for example), and are only applicable to Swiss travel booking services.

Swiss travel agencies need to guarantee reimbursement, and most subscribe to a travel guarantee fund like those provided by the Garantiefonds der Schweizer Reisebranche and the Travel Professional Assoiation. These funds cover the cost of reimbursing bookings if the travel agent is unable to do so.

If you book travel online, it is important to note that many travel websites are not travel agencies per se, but simply aggregate offers from travel services. Thus you may effectively be booking the various parts of your travel package from separate travel agencies - or directly from airlines, hotels and event organizers.

If you book travel through foreign travel portals or agencies, the laws governing reimbursment in the country where the merchants are domiciled apply. In this case, it may be very difficult or impossible to get reimbursed for services which aren't provided as promised.

Travel insurance generally only covers the cost of cancellations made by you, and not cancellations by travel service providers. In this case, legal expenses insurance may be more useful in covering the costs of securing reimbursement.

Best regards from Moneyguru

More on this topic:
Travel insurance comparison
Travel insurance tips
Tips for cheaper hotel stays
Vacation checklist

Request now for free

Cheap bank accounts with card

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss digital bank

Radicant

  • High interest on your everyday account

  • Best exchange rates

  • Up to 1% of card spending as saveback in the investment portfolio

Swiss Bank

Bank WIR Bankpaket Top

  • Free account & card

  • No exchange fees for foreign payments (interbank exchange rates)

  • 24 ATM withdrawals worldwide per year free of charge

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Request now for free

Cheap bank accounts with card

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss digital bank

Radicant

  • High interest on your everyday account

  • Best exchange rates

  • Up to 1% of card spending as saveback in the investment portfolio

Swiss Bank

Bank WIR Bankpaket Top

  • Free account & card

  • No exchange fees for foreign payments (interbank exchange rates)

  • 24 ATM withdrawals worldwide per year free of charge

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Deal of the Day
×
Free bank account

Yuh

No account fees