Germany Slashes Travel Industry Protection Levies

The German Travel Association (DRV) confirmed that levies paid into the German Travel Security Fund (DRSF) will drop from 0.5% to 0.25% of protected travel turnover. This adjustment is expected to inject approximately €70 million back into the industry annually. Additionally, the government is slashing required collateral by roughly €560 million, a move designed to lower capital costs and reduce the burden of bank guarantees and insurance premiums for providers.

TUI, Europe’s largest tour operator, welcomed the decision as a necessary interim measure but argued for more aggressive cuts. The company maintains that since the fund already holds about €1 billion in capital, reducing contributions to zero would not compromise consumer safety. The fund was originally established in 2021 following the high-profile collapse of Thomas Cook to ensure travelers receive refunds if their tour operator goes bankrupt.