Which term refers to the financial protection of consumers in the event of a travel agency going bankrupt?

The Compensation Fund is designed specifically to provide financial protection to consumers in the unfortunate event that a travel agency files for bankruptcy. This fund is essential for protecting travelers’ deposits and payments, ensuring that even if a travel agency encounters financial difficulties, consumers can still recover some, if not all, of their money.

This fund operates under regulations that mandate travel agencies to contribute to it, which helps maintain trust and security in the travel industry. When a travel agency fails, the Compensation Fund is there to step in and reimburse customers for unused travel services, safeguarding their investments and supporting consumer confidence in booking travel services.

The other options relate to financial or consumer protection mechanisms but do not specifically address the bankruptcy context in which the Compensation Fund operates.