What incident results in consumers being eligible for a refund from the Compensation Fund?

Consumers are eligible for a refund from the Compensation Fund primarily in situations where the travel service provider has gone bankrupt. This protection is in place to safeguard customers from financial loss when a travel agency or supplier is unable to fulfill their obligations due to insolvency. The Compensation Fund serves as a financial safety net, ensuring that consumers can recover their money when they have prepaid for services that are no longer available because the provider can no longer operate.

Other incidents, such as promotional discounts, weather-related flight cancellations, or changes in a travel itinerary, do not trigger eligibility for refunds from the Compensation Fund. Discounts offered at the time of booking are a marketing strategy and do not impact the financial stability of the provider. Weather-related cancellations fall under operational issues, which, while unfortunate, are typically addressed through travel insurance or the terms and conditions of the service provider rather than the Compensation Fund. Additionally, changes in itineraries are often a normal part of travel and do not generally indicate that the service provider is unable to fulfill its service commitments due to financial problems.