Rainbow Tours boosts financial guarantee by 60 million zloty amid sales growth

Polish tour operator Rainbow Tours announced it has signed an addendum with its insurer, Towarzystwo Ubezpieczeniowe Europa, to increase its financial guarantee by 60 million Polish zloty. The previous guarantee stood at 440 million zloty, a figure set in September of the previous year.

This increase in security was deemed necessary because of rising tour sales. Polish law mandates that a travel agency's financial guarantee must be proportional to its sales volume. Rainbow's recent reports indicate a 5.8% increase in outbound trip sales in the first half of the year compared to the same period in the prior year. This growth suggests the company anticipates strong sales figures in the third quarter as well.

The company's management stated in a release, "The increase in the Guarantee Sum has been made in connection with the expected increase in actual revenues generated by the company in relation to those previously projected and in order to guarantee compliance with the requirements and provisions regarding the minimum guarantee sum."

The enhanced guarantee covers potential claims from contracts signed between August 14 and September 16 of the current year, even if their execution falls outside this period, including the one-year post-guarantee period. Industry observers anticipate Rainbow Tours will soon announce a new insurance guarantee, potentially a mix of insurance and bank guarantees, for the upcoming twelve months, likely amounting to at least 500 million zloty.

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The increase in the Guarantee Sum has been made in connection with the expected increase in actual revenues generated by the company in relation to those previously projected and in order to guarantee compliance with the requirements and provisions regarding the minimum guarantee sum.