Czech tour operator vs travel agency: who may sell what

On Czech websites and in quotes you will come across two terms that sound almost identical: cestovní kancelář and cestovní agentura. The first is a tour operator, sometimes translated literally as a travel office; the second is a travel agency. For travellers, and for companies and organisers that book services in Prague for their guests, this is not hair-splitting. Under Czech law, the two categories have different rights and obligations, and customers enjoy a different level of protection with each. This article summarises what the law says and explains what follows from it in practice. It is not legal advice: in a specific case, it is worth consulting a lawyer.

Which law applies

The conditions for running a tour operator or travel agency business are set by Act No. 159/1999 Coll., on certain conditions of business and on the performance of certain activities in the field of tourism, as amended. A major change came with the amendment made by Act No. 111/2018 Coll., in force since 1 July 2018. It transposed Directive (EU) 2015/2302 on package travel and linked travel arrangements into Czech law and, among other things, introduced the concept of linked travel arrangements.

What package travel means under the law

The law defines package travel (zájezd) as a combination of at least two different types of travel service for the purpose of the same trip or holiday. There are four types of service:

• Transport.
• Accommodation that is not part of transport and is not for residential purposes.
• Rental of a car or other motor vehicle.
• Other tourist services, such as tickets for cultural or sports events, excursions or guided tours.

Among other cases, a combination counts as package travel when it is offered by a single trader, when it is put together at the customer's request or according to their choice before a single contract is concluded, when the services are sold or charged at a total price, or when they are advertised as a “package” or under a similar name.

The law also sets out exceptions. For example, accommodation combined with tickets or a guided tour is not package travel if these additional services do not account for a significant share of the price and are not advertised as an essential feature of the trip. Under the law, services are presumed to account for a significant share if their price reaches at least 25% of the total price. The law also does not apply to package travel and linked travel arrangements lasting less than 24 hours unless they include an overnight stay, or to those bought under a general agreement for the arrangement of business travel.

What linked travel arrangements are

Linked travel arrangements (spojené cestovní služby) are a looser combination. The customer buys at least two different types of travel service for the same trip, but signs a separate contract with each provider. A linked travel arrangement arises when a seller, during a single visit or contact, facilitates the separate selection and separate payment of each service, or when it facilitates, in a targeted way, the purchase of an additional service from another provider and the contract for it is concluded within 24 hours of the confirmation of the booking of the first service.

Only a tour operator whose concession covers this activity may facilitate linked travel arrangements. For all payments it receives from customers in doing so, it must have insolvency insurance or a bank guarantee in place.

Tour operator (cestovní kancelář)

A cestovní kancelář, literally a travel office and in practice a tour operator, is a business with a concession (koncese), meaning state permission to operate the trade. The Ministry of Regional Development issues a binding opinion on every application for the concession. A tour operator may put together travel services and offer and sell package travel in its own name. It may also facilitate linked travel arrangements, sell individual travel services and act as an intermediary for package travel organised by another tour operator.

With these rights come the main obligations. A tour operator must have insolvency insurance or a bank guarantee covering insolvency. Customers can claim from this insurance or guarantee if, because of its insolvency, the tour operator fails to provide transport back from the destination, fails to refund a deposit or the price of a package holiday that did not take place, or fails to refund the difference in price when a package holiday took place only in part.

By law, the insurance limit must be at least 30% of the planned annual revenue from the sale of package travel. If customers' claims still exceed the limit, the insurer pays the difference from the guarantee fund (garanční fond). Tour operators contribute to the fund every year, and it is managed by the State Investment Support Fund (Státní fond podpory investic).

Only a business with a valid concession, or a tour operator established in another member state of the European Union or the European Economic Area, may use the name “cestovní kancelář” or the abbreviation “CK”. The Ministry of Regional Development keeps a public list of tour operators, which also shows details of their insurance or bank guarantee.

Travel agency (cestovní agentura)

A cestovní agentura, a travel agency, operates on the basis of a notified general trade licence, known in Czech as a free trade (volná živnost), and does not need a concession. It may offer and sell individual travel services, such as accommodation, transport, tickets or guides, and act as an intermediary in selling them for other businesses. It may also put together combinations of services and sell them to a tour operator for use in the tour operator's own business, and sell goods related to tourism, such as maps or tickets.

A travel agency may only act as an intermediary for package travel, and only for a tour operator. In that case, the package travel contract is concluded in the name of the tour operator for which the agency is selling, and that tour operator is the organiser. A travel agency neither organises nor sells package travel in its own name.

When a travel agency sells package travel as an intermediary, it must always state in its offer which tour operator it is selling for, show proof of that tour operator's insolvency insurance or bank guarantee on request, and accept customer complaints and pass them on to the organising tour operator without undue delay. It must mark its premises and promotional materials with the words “cestovní agentura”, unless its business name already contains them.

The law does not require a travel agency to have its own insolvency insurance. The obligation to insure lies with whoever organises package travel or facilitates linked travel arrangements, which means the tour operator.

At a glance

	Tour operator (cestovní kancelář)	Travel agency (cestovní agentura)
Authorisation	concession	notified general trade licence
Package travel under the law	organises and sells it in its own name	only sells it as an intermediary for a tour operator
Linked travel arrangements	may facilitate them	not authorised
Individual travel services	yes	yes
Insolvency insurance	compulsory	not required by law
Contribution to the guarantee fund	compulsory	does not apply
Name it may use	“cestovní kancelář” or “CK”	“cestovní agentura”

What it means for companies and organisers

Are you buying package travel or individual services? If a company buys a combination of services for its employees, such as a flight and a hotel from one seller, this may be package travel under the law, and only a tour operator may sell it, or a travel agency in the tour operator's name. The law does not apply to trips bought under a general agreement for the arrangement of business travel. If, on the other hand, you need individual services on the ground, such as transfers, a hotel for your guests, a guide or a restaurant table, a travel agency can arrange them too.

Who is responsible for what? The organiser of package travel is the tour operator, even when a travel agency sold it. For individual services it depends on the contract, so the quote should make clear who provides each service and on what terms.

Is the seller who it says it is? Check its company registration number (IČO) and registered business activities in the public part of the Trade Licensing Register (živnostenský rejstřík), and for a tour operator also its entry in the Ministry of Regional Development's list. Before you sign a contract, a tour operator must show you proof of its insolvency insurance or bank guarantee on request.

How PraguePrivate works

PraguePrivate is a travel agency (cestovní agentura). We arrange individual travel services in Prague and the Czech Republic: airport transfers, hotels, cars with drivers and coaches, licensed guides, restaurant reservations, tickets and tailor-made programmes. We list each service separately in an itemised quote, so you can see exactly what you are ordering. We do not organise or sell package holidays.

For tour operators abroad we work as a partner on the ground: the tour operator organises and sells the trip, and we arrange the services in Prague for it. You can read how this works on our partners page and in our article on what an incoming agency does. If you need services arranged for your guests, ask us for a free, itemised quote.