GermanyWhat happens if the tour operator goes bankrupt?
If a German tour operator goes bankrupt, you’re entitled to a full refund of prepaid amounts, repatriation, and accommodation until return — guaranteed by mandatory insolvency protection.
What the Law Says
German law requires all package tour operators to provide financial protection so travelers aren’t left stranded or out-of-pocket if the company becomes insolvent.
Under BGB § 651r, every tour operator in Germany must ensure that travelers receive a full refund of all prepaid amounts if the operator becomes insolvent — including unused services like hotels, excursions, or transport. If your trip includes transportation, the operator must also guarantee your safe return home (repatriation) and cover necessary accommodation until you’re flown back.
This protection applies regardless of where you live, where you booked, or where your trip starts. Since November 1, 2021, most operators must use a government-approved Reisesicherungsfonds (Travel Security Fund). Smaller operators — those with less than €10 million annual turnover — may instead use an approved insurer or bank guarantee.
For very small operators (under €3 million turnover), insurers or banks may cap their total payout per insolvency at €1 million. If total claims exceed that amount, refunds are reduced proportionally — but this cap does not apply to larger operators, whose protection is unlimited.
Statutory TextDer Reiseveranstalter hat sicherzustellen, dass dem Reisenden der gezahlte Reisepreis erstattet wird, soweit im Fall der Zahlungsunfähigkeit des Reiseveranstalters Reiseleistungen ausfallen oder der Reisende im Hinblick auf erbrachte Reiseleistungen Zahlungsaufforderungen von Leistungserbringern nachkommt, deren Entgeltforderungen der Reiseveranstalter nicht erfüllt hat.
— BGB § 651r (1) — German Civil Code
Statutory TextDie Verpflichtungen nach Absatz 1 kann der Reiseveranstalter vorbehaltlich des Satzes 2 ab dem 1. November 2021 nur durch einen Absicherungsvertrag mit einem nach dem Reisesicherungsfondsgesetz zum Geschäftsbetrieb befugten Reisesicherungsfonds erfüllen.
— BGB § 651r (2) — German Civil Code
Statutory TextVersicherer und Kreditinstitute können ihre aus Verträgen nach Absatz 2 Satz 2 Nummer 1 und 2 folgende Einstandspflicht für jede Insolvenz eines Reiseveranstalters, der im letzten abgeschlossenen Geschäftsjahr einen Umsatz im Sinne des § 1 Nummer 2 Buchstabe a des Reisesicherungsfondsgesetzes von weniger als 3 Millionen Euro erzielt hat, auf 1 Million Euro begrenzen.
— BGB § 651r (3) — German Civil Code
What Courts Have Said
German courts have confirmed that insolvency protection must be immediate, comprehensive, and directly enforceable by travelers.
The Federal Court of Justice ruled that insolvency insurance must cover the full prepaid travel price and that insurers must arrange repatriation and issue refunds without delay when the tour operator becomes insolvent during the trip.
What to Do
Check your booking confirmation for the Sicherungsschein (insolvency protection certificate) — it must name the fund, insurer, or bank providing coverage.
If the operator declares insolvency, contact the Absicherer (fund/insurer/bank) directly — you have a direct legal claim against them under BGB § 651r (4).
Keep all receipts, contracts, and proof of payment — these are required to file your claim.
If you’re abroad and stranded, the Absicherer must arrange your return flight and cover reasonable accommodation costs until departure.
Sources
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South KoreaNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.