As we know, the COVID-19 crisis grounded a large number of flights, as country after country went on lockdown and many borders were closed. Travel agencies are facing a complete standstill of activity - and the tourism sector is suffering harsh financial consequences.
The cancellation of trips for exceptional circumstances usually entails reimbursement within 14 days. However, the sudden and unprecedented deluge of reimbursement requests risks generating a critical liquidity shortage in the sector, leaving it struggling for survival.
To mitigate these potentially devastating effects, the Luxembourgish government has decided to temporarily suspend the processes involving the termination of package travel contracts during the ongoing crisis.
It is important to note that this exceptional measure only postpones the reimbursement of customer advances.
