A performance bond is a form of insurance held by tour operators in case of financial difficulties.

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A performance bond is a type of insurance or guarantee designed to protect clients or customers in case a company or service provider fails to fulfill their obligations or financial commitments. In the context of tour operators, a performance bond is used to ensure that the company has sufficient funds or backup resources to compensate customers in case of cancellations, disruptions, or other forms of financial liabilities. This type of insurance is often required by law or industry regulations to safeguard the interests of travelers and prevent fraudulent or unethical practices in the tourism sector.

A Performance Bond Is a Form of Insurance Held by Tour