GermanyWhat happens if my German travel agency goes bankrupt?
You’re protected by statutory insolvency insurance under the Package Travel Act (Pauschalreisegesetz). Your prepaid funds are secured, and you’re entitled to repatriation or refund.
What the Law Says
German law mandates strict financial protection for package holiday buyers to prevent loss of payments and ensure safe return.
Under § 651r of the German Civil Code (BGB), implemented via the Pauschalreisegesetz (Package Travel Act), every licensed German travel agency selling package tours must hold insolvency protection — either through a surety bond, bank guarantee, or insurance policy approved by the German Federal Office of Economics and Export Control (BAFA). This ensures all prepayments are safeguarded in case of insolvency.
The protection covers full reimbursement of payments and, crucially, the cost of repatriation if you’re already abroad when the agency fails. This obligation arises automatically — no claim filing is needed for basic coverage, though documentation may be required for reimbursement processing.
Statutory TextThe organizer shall take appropriate measures to ensure the repayment of payments made by the traveller and the traveller’s repatriation in the event of the organiser’s insolvency.
— BGB § 651r para. 1
What to Do
Verify immediately whether your booking qualifies as a ‘package tour’ (Pauschalreise) under § 651a BGB — i.e., combination of at least two travel services (e.g., transport + accommodation) booked under one contract, lasting >24h or including overnight stay.
Contact the insolvency insurance provider listed on your booking confirmation or the agency’s website; claims are handled directly by the insurer (e.g., ERV, Allianz Travel, or HanseMerkur), not the bankrupt agency.
If abroad: Contact the German embassy or consulate and your insurer — repatriation must be arranged without delay (EU Regulation 261/2004 and national implementation require assistance within 72 hours).
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Not 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: 2026-10-05.