Decision ID: 000277

In October 1993 the 1971 Fund Executive Committee considered a claim by an Italian travel agent/tourist accomodation bureau and decided that losses suffered in respect of loss of commission on contracts with hotels and contracts in respect of flats were not different in character to those suffered by owners of hotels in the same area and that these losses were admissible in principle.As regards the claim item relating to loss of profit resulting from reduced prices, the Committee instructed the Director to study the claim in more detail to establish whether there was a general reduction in prices in the area, whether any reduction was due to the incident and whether the claimant had made the price reductions in order to get a competitive advantage over other operators. The Committee decided that the claim item relating to an advertising campaign was inadmissible, since it did not fulfil the criteria for the admissibility of preventive measures laid down by the Committee at its June 1993 session, namely that the costs of the measures were reasonable and not disproportionate to the further damage or loss that they were intended to mitigate, that the measures were appropriate, offered a reasonable prospect of success and in the case of marketing campaigns, related to actual targeted markets. .

Date: 30.09.1993
Category: Pure economic loss (tourism)
Subject: Specific claims considered by the governing bodies