Ali Arnaout and Stefan Mees, heads of the German Travel Insurance Fund (DRSF), are working diligently to ensure the reimbursement of FTI customers while also securing agreements with nearly all airlines to facilitate the return of stranded holidaymakers. While trips scheduled until June 10 are set to proceed, those planned after this date have been canceled.
65,000 customers on holiday, €750 million in the fund
In a lengthy statement on its official website, the fund management stated, "As part of its legal mandate, DRSF will ensure the reimbursement of payments made. The travel provider will contact affected consumers as soon as it is impacted by the bankruptcy. The insolvency management has provided the necessary data to DRSF."
While the fund has remained silent on its exact finances, projections suggest that the fund, established in 2021, has around €750 million. Approximately 65,000 FTI customers are estimated to be on holiday or traveling.
Need for swift resolution
However, the tourism sector is eagerly anticipating a swift resolution to this issue. The President of the German Travel Association, Norbert Fiebig, has urged both the DRSF management and FTI to resolve the matter promptly, stating, "Uncertainty and dissatisfaction need to be eliminated as soon as possible."
Currently, a significant concern for travel agencies and customers is the fate of FTI package holidays sold or purchased for dates after June 10, resulting in uncertainty regarding these reservations.
Warning against hastily canceling and rebooking
Fund manager Stefan Mees has cautioned customers and travel agencies against hastily canceling future reservations. If customers book a second trip, they may end up with two travel contracts. Should the reservation through FTI proceed, they could face losses by canceling the other reservation under normal conditions.
Hotels demanding payments
Another issue arising from FTI’s bankruptcy is that some hotels, not receiving payments from FTI, are asking holidaymakers to pay again while on vacation.
The German Travel Association has noted that this situation currently affects only a few individual cases.
Ali Arnout stated that hotels’ claims, based on DMC’s cost statements, will be verified and paid according to proven statements under FTI’s contracts.