There are strict controls on tour operators in the UK. Most people assume this applies across the EU but weekenders from Britain should be aware of the risks of booking a weekend in Budapest through a company without a license to operate.
With thousands of young men coming to Eastern Europe on stag weekends to sample the cheap booze and buzzing nightlife of cities like Budapest, Bratislava and Warsaw, organising stag and hen weekends is a lucrative business. The Wall Street Journal estimates the market is worth a Ј60 million a year, so it's no wonder new companies are popping up every day.
Unfortunately, only a handful of those in Budapest are licensed, and some are not even legitimate concerns. So what does this mean for the customer?
Most tour operators in Britain are members of an association like ABTA or ATOL, which means they have to follow a strict code of conduct. These associations also give holidaymakers an option when their trip abroad fails to live up to expectations. For this reason, visitors are strongly advised to book a weekend in Budapest through a locally run company like Stag Republic.
Stag Republic was the first stag weekend organiser in Hungary, so when we set up the company, we wanted to do everything by the book. We filled out all the necessary paperwork and continue to pay an annual membership fee to MUISZ, the Hungarian Association of Tour Operators and Travel Agencies. Since then, several companies have started up, and not a single one has gone down this route. What this means for weekenders is that if they are taken for a ride or do not receive the expected level of service, they have nowhere to turn. This is a big risk to take when you are leaving a hefty deposit and handing over credit card details or hundreds of pounds in cash.
But not only are many companies not affiliated to MUISZ, some of them are not even operating legally or paying taxes. Many of our competitors are based wherever it suits them at any time. For tax purposes in the UK, they are Hungarian, but at the same time, they do not have a registered company in Hungary. We have done a lot of research into this - they are acting entirely illegally and are accountable to no one, in some cases not even the tax authorities. This puts our business at a huge disadvantage.
Because of the lack of official licensing for our competitors, we took the step of requesting an official enquiry into local organisers and already, the National Association for Consumer Protection has found the following:
• Hungary for Fun is a "local program organiser", which means it does not require a permit to operate. However, the company can only officially offer a maximum of one activity per group. By offering packages on their website, they are breaking the law.
• Budapest Piss-up is registered as an English-language online information portal that does not offer services. One glance at the site reveals this to be untrue.
• Budapest Madness is yet to respond the official inquiry and is currently under investigation.
Where this leaves stag weekenders is not clear. The majority have a great time - it's hard not to in Eastern Europe - but if that hotel booking goes wrong, the airport transfer fails to arrive or the activities aren't up to scratch, there's no one to turn to and the best man gets the blame.
Is that a risk worth taking to save a couple of quid?
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