Travel agencies - Cancellation of licences
There are two main reasons for the cancellation of a travel agency licence:
- The licence holder may request the withdrawal of the licence.
- The Icelandic Tourist Board may revoke the licence.
Travellers holding a claim for the purchase of package travel or linked travel arrangement that is not performed due to the cancellation of a licence can make a claim towards the Icelandic Travel Insurance Fund.
Cancellation at the request of the licence holder
A licence holder who wants to withdraw a licence must send a formal request for withdrawal to the Icelandic Tourist Board.
The request must be sent to mail@ferdamalastofa.is along with a statement and explanation containing the following information:
- Whether there are any outstanding claims for package travel.
- Are there any travellers currently on a package tour that the travel agency is responsible for and/or if any travellers have bought a package tour that has not yet taken place.
- Verification that all travel agency operations have been suspended.
The company website/websites must be updated so that no licence bound activities are offered. If all operations have been suspended the website should be closed.
If there are outstanding claims detailed information on those must be sent to the Icelandic Tourist Board. The following details must be provided:
- Information on the package tours.
- Name/names and contact information of those who bought package tours.
- Amount of payments received for package tours.
- Whether any payments have been made to suppliers for services included in package tours and/or have suppliers receive full payment for the package tours.
The Icelandic Tourist Board will request further information if deemed necessary.
Cancellation (revocation) of a licence by the Icelandic Tourist Board
If a licence holder no longer fulfils legal requirements for a licence the Icelandic Tourist Board is either obliged to or authorised to revoke the licence.
The Icelandic Tourist Board is obliged to revoke a licence:
- In the event of bankruptcy or insolvency of a licence holder.
- If the company representative (foreperson) is deprived of the rights to manage his own finances.
- The package travel security is no longer valid or does not fulfil legal requirements.
The Icelandic Tourist Board is authorized to revoke a licence:
- If the company representative (foreperson) no longer fulfils the requirements as a foreperson for a licence holder.
- If safety plans are insufficient.
- In case of other violations against the Act on Icelandic Tourist Board no. 96/2018.
- If a travel agency does not fulfil legal requirements regarding the submission of annual financial statements and other documents and information for annual reassessment of package travel security.
- If a travel agency does not comply with the Icelandic Tourist Board’s decision to increase the amount of package travel security.
A travel agency licence will be revoked if a licence holder has not complied with the decisions or directions of the Icelandic Tourist Board despite of repeated warnings.
When a licence is revoked and the package travel security has been provided as a guarantee-statement, the security is claimed from the issuer.
The Icelandic Tourist Board publishes the cancellation in „Lögbirtingablað“ and other media as needed in accordance with the Act on package travel and linked travel arrangements, paragraph 2 of article 26.a. A notice of the cancellation is also published on the Icelandic Tourist Board’s website.
Upon publishing the cancellation of a licence, the Icelandic Tourist Board calls for claims form travellers who might hold claims towards the Icelandic Travel Insurance Fund for tours that have not been completed in part or full.
The licence holder pays the cost of the call for claims.
Claims must be submitted in writing and within two months from publication of the call to present claims.
The Icelandic Tourist Board decides on the validity of claims and settles approved claims on behalf of the Travel Insurance Fund.
The Icelandic Tourist Board gathers information on whether travellers are on package tours organized by the travel agency and/or whether any travellers have bought package tours that have not yet taken place. If there are any outstanding claims the following information is collected:
- Information on the package tours.
- Name/names and contact information of those who bought package tours.
- Amount of payments received for package tours.
- Whether any payments have been made to suppliers for services included in package tours and/or have suppliers receive full payment for the package tours.
The Icelandic Tourist Board seeks cooperation with airlines and decides on repatriation of travellers if applicable. Travellers are informed of the decision of the Icelandic Tourist Board.
If no claims are made within the time limit for making claims the Icelandic Tourist Board sends a confirmation of the cancellation of licence to the issuer of the package travel security or refunds the security amount from the licence holders security account.
What must travellers do to get a refund?
Travel agencies as sellers of package travel and linked travel arrangements are obliged to be members of the Travel insurance fund, provide a package travel security, and pay a base fee and annual fees towards the fund.
The Travel insurance fund refunds all payments made for package travel or linked travel arrangements that are not performed, partially or in full, as the result of the bankruptcy or insolvency of a travel agency, or the revocation of a travel agency licence by the Icelandic Tourist Board. The fund also covers the cost of repatriation of travellers when transportation is part of the package travel contract.
The cancellation of a licence can lead to refunds from the Travel Insurance Fund in the case of outstanding claims for package travel or linked travel arrangements, regardless of whether the tour is in progress or has not yet taken place.
Travellers holding claims towards the Travel Insurance Fund must direct those to the Icelandic Tourist Board, please follow the link below for further information.
Information for travellers on claims towards the Travel Insurance Fund
Practical information for travellers
The Icelandic Tourist Board gathers information on tours in progress, the status of the tours and travellers on those tours and seeks cooperation with airlines and decides on the repatriation of travellers if applicable. Travellers are notified of the decision of the Icelandic Tourist Board.
When airline tickets are a part of a package tour or linked travel arrangement, the Icelandic Tourist Board seeks cooperation with airlines and facilitates the most economical way of repatriation of travellers. There are two possible solutions, either the travellers arrange for homebound travel at their own cost, or the Icelandic Tourist Board provides the homebound travel.
Travellers currently abroad:
Travellers pay for the cost of repatriation and can make a claim towards the Travel Insurance Fund for the cost. Travellers should seek to travel economically. The Icelandic Tourist Board seeks cooperation with airlines in order to make repatriation of travellers smooth in terms of priority seats, favourable pricing, travel route, etc.
Travellers within Iceland:
Travellers arrange for their travel home at their own cost. Travellers can make a claim towards the Travel Insurance Fund for the cost of travel. The Icelandic Tourist Board will take no further action.
Repatriation of travellers:
When the Icelandic Tourist Board, on behalf of the Travel Insurance Fund, arranges for repatriation of travellers, the travellers can make no further claims. If travellers decide to take advantage of the repatriation, and hence cut their travel short, they can make a claim towards the Travel Insurance Fund for the services not delivered according to the package travel contract. If travellers, on the other hand, decide to arrange for their travel home at their own cost, they can make a claim towards the Travel Insurance Fund for the cost of the homebound travel.
Cancelled and revoked licences
Follow the link below for a list of cancelled travel agency licences, please note the list is in Icelandic.