How to choose a travel agency: contract, payment and bankruptcy protection

A travel agency can disappear with your money before you even fly out. Without a proper contract, recovering what you paid is nearly impossible.

Under German law (BGB), a package tour protects your payment against operator bankruptcy. If the company shuts down, the insurer refunds your money. This rule does not apply to a set of separate tickets and bookings.

Below are a few checks to run before paying. They take only minutes and eliminate the main risks when choosing a travel agency.

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Agent or operator: who you are contracting with

💡 In short:

• Clarify who your contractual partner is. An agent sells someone else's tour, an operator is responsible for the trip itself.
• Demand a Sicherungsschein if you are buying a package.
• Check that the company name in the contract, in the Impressum, and on the payment invoice all match.
• Pay only to the company account. Never in cash or to a private individual.
• Travel agency checks are aligned with Verbraucherzentrale guidance, 09/2026.

The difference between an agent and an operator determines who you file claims against. A tour operator (Reiseveranstalter) assembles the tour and is responsible for the hotel, flight, and transfer. A travel agent (Reisebüro) only sells a ready-made tour.

You sign the contract with the operator, not with the neighborhood office that handled the paperwork. If the bus never showed up, you claim compensation from the operator. Not from the seller.

The agent must hand over the documents and contact details of the provider. Ask directly who organizes the trip. The answer "we only handle the paperwork" means the money goes to another company. That is the company you need to check.

Step 1: check that it is a package tour

Package status determines whether your money is protected. A package tour consists of at least two different services for one trip, for example a flight and a hotel (§651a BGB). A hotel alone is not enough.

A trip shorter than 24 hours without an overnight stay and costing less than €500 does not count as a package (as of 09/2026, §651a BGB). Services that account for less than 25% of the total cost also do not give package status (the same §651a). Such bookings have weaker protection.

Check the terms before paying. Sometimes it is better to assemble the trip yourself. Compare the agency price with a direct search, for example hotel prices on Trip.com.

Step 2: demand a Sicherungsschein

A Sicherungsschein confirms protection against operator bankruptcy. Under §651r BGB the operator is required to insure your payment. If the company goes bankrupt, the money is refunded by the insurer, a bank, or the Reisesicherungsfonds. Verified on 14.09.2026 on the official website.

Do not pay without the document. If the operator exits the market before your departure, you lose everything you paid. With a Sicherungsschein you get the amount back on demand.

Request the document at the moment of payment. A promise to "send it later" should raise a red flag.

Step 3: check the company name and contract

Fraudsters often use nearly correct names of well-known companies. One extra character in the domain changes who receives the money.

Check three points. The name in the contract, the name in the Impressum on the website, and the recipient name in the payment details. All three must match. Ask for the commercial register number (Handelsregister).

Read the terms before signing. The contract must cover all contingencies: flight delay, cancellation, hotel substitution. A manager's verbal promises carry no weight.

Step 4: understand payment and cancellation

A package tour has no 14-day right of withdrawal (Widerrufsrecht). The rule applies both to online bookings and purchases at an agency (according to Verbraucherzentrale, 09/2026). Plan cancellations in advance.

You can cancel a tour before departure under §651h BGB. But the operator retains a reasonable share of the price. The later you cancel, the higher the retention. The exact tiers are set out in the operator's terms.

Pay by card or bank transfer to the company account. Separately compare insurance terms. A policy does not cover operator bankruptcy. But it does cover illness and cancellation for personal reasons.

Step 5: document problems on site

Complaints after you return work worse than complaints on site. Report any problem immediately to the operator's representative. Demand written confirmation.

Photograph everything that did not match the contract. The room, the view from the window, the condition of the beach. Photos and statements will help when dealing with the operator.

Keep receipts until the end of the trip. They confirm the expenses you will claim for reimbursement.

If the operator refuses, contact the consumer center (Verbraucherzentrale, 09/2026). Individual excursions are easier to book directly, for example tours and excursions on GetYourGuide.

⁉️🤔 Frequently asked questions

Do my rights change when booking online?

No. EU package tour rules protect travelers equally online and at an agency. If the seller packages a flight and hotel as a package, the same refund rules apply. Just check that you are actually looking at a package, not a set of separate bookings.

What should I do if the operator goes bankrupt before departure?

Present the Sicherungsschein to the insurer or to the Reisesicherungsfonds. Keep the document together with the contract and receipts. Without it, you join the general line of creditors.

Can I cancel a tour and get all my money back?

A full refund is rare, because the operator retains part of the price. Cancellation due to illness is possible if you have suitable insurance.

How do I tell a serious travel agency from a fraudster?

Fraudsters most often ask for cash or a transfer to a private individual abroad. A serious operator issues a Sicherungsschein and does not pressure you to pay within the hour.

What matters more: price or protection?

A package tour offers more protection than a self-assembled trip. An agency helps with complex routes and connecting flights. If you only need a flight and a hotel, compare both options and calculate the total cost, not just the tour price.

In short: what is worth booking

Before paying, close three questions. Who your contractual partner is, whether there is a Sicherungsschein, and whether the company names match. These checks save the entire cost of the trip.

• If you have a complex route: take a package from an operator with a Sicherungsschein.
• If you are traveling on your own: look at hotels on Trip.com and compare the price with an agency.
• If you are worried about cancellation: add insurance before paying for the tour.

Book with an operator who gives you documents in hand and does not rush you to transfer money. That kind of company you can always check again.