What are travel compensation funds?

A travel compensation fund or a TCF has been instituted for reimbursing the consumers if there is a failure on the part of the travel agency. Therefore, every travel agency is required to get cash injected in the fund and they are needed to meet the minimum financial criteria part from the standard business requirements.

The travel agency also has an obligation of having financial statements that are audited every year by a company auditor who is registered. According to the requirements, the statement has to be submitted within three months after the reporting period comes to an end. Therefore, financial statement should be submitted before September 30, if the end of the financial period is June 30. With a small fee, you could be granted with an extension of the period of submission. The annual financial review has to be lodged electronically on the website of the Travel Compensation Fund.