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Stricter Regulations for Hungarian Travel Agencies

Stricter Regulations for Hungarian Travel Agencies

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As of 1 July 2018, the provisions regulating the obligations of travel agencies in the Hungarian Commerce Act will be amended in order to comply with the EU directive on package travel and linked travel arrangements.

The definition of the travel organiser and travel agent activity will be amended, and the Hungarian Commerce Act will be completed with the definition of the traveller and the commercial activity facilitating linked travel arrangements. The Hungarian Commerce Act will state that it is forbidden to sell the travel package in separate parts to the consumers and the consumer protection authority will be competent to check this prohibition. 

The trader facilitating linked travel arrangements will need to have financial security, the amount of which will also be amended depending on the type of the travel package. Under the new provisions, where the travel services also include carriage of passengers, the travel organiser must conclude an insurance agreement with an insurer for the benefit of the traveller as beneficiary. In case the travel entrepreneur does not undertake to ensure the repatriation of the beneficiaries and the costs of the forced stay abroad, the insurer must take the necessary measures and the travel entrepreneur has to provide the insurer with the relevant data.

By Rita Parkanyi, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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