Package Travel Terms & Conditions - valid from January 1st, 2026

These Terms & Conditions apply to package travel arrangements organised and sold by Farvatn ehf. (“the Company”), an Icelandic licensed travel agency and tour operator.

These Terms are governed by Icelandic law, including applicable legislation implementing the European Package Travel Directive.

1. Scope of Services

A package travel arrangement consists of a combination of at least two different travel services sold as a single package or otherwise constituting a package under applicable law.

The Company acts as organiser of the package travel arrangements covered by these Terms.

The Company maintains insolvency protection in accordance with Icelandic law applicable to licensed tour operators.

2. Booking & Formation of Contract

A booking becomes binding when:

• the traveller accepts the offered arrangements; and

• any required deposit has been paid.

The person making the booking confirms that they are authorised to accept these Terms on behalf of all travellers included in the booking.

A booking confirmation and invoice will be issued following confirmation.

3. Payment Terms

Unless otherwise specified in writing:

• a deposit is payable upon booking confirmation;

• the remaining balance must be paid by the due date specified on the invoice or confirmation.

Failure to pay by the due date may entitle the Company to cancel the booking and retain applicable cancellation charges.

4. Prices

Prices are based on costs, taxes, exchange rates and supplier pricing applicable at the time of quotation.

The Company reserves the right to adjust prices prior to departure solely as a direct result of changes in:

• transportation costs, including fuel prices;

• taxes or fees imposed by third parties not directly involved in the performance of the package;

• exchange rates relevant to the package.

No price increase will be imposed within 20 days before departure.

If a price increase exceeds 8% of the total package price, the traveller may terminate the contract without paying a termination fee.

The traveller is entitled to a corresponding price reduction where the above costs decrease before departure.

5. Changes Requested by the Traveller

Requests for changes after confirmation are subject to availability and may result in additional costs, including:

• supplier-imposed fees;

• fare differences;

• reasonable administrative charges.

Certain travel services, including some airline tickets and accommodation rates, may be non-changeable or non-refundable after booking.

6. Cancellation by the Traveller

The traveller may cancel the booking at any time prior to departure by written notice.

Cancellation charges reflect the estimated losses and unrecoverable costs incurred by the Company and its suppliers.

Unless otherwise stated in the booking confirmation, the following cancellation charges apply:

• More than 60 days before departure: deposit forfeited

• 59–30 days before departure: 50% of total package price

• 29–15 days before departure: 75% of total package price

• 14 days or less before departure: 100% of total package price

Where suppliers impose higher non-refundable costs, including for certain airline tickets or special-rate accommodation, the Company reserves the right to charge the actual unrecoverable costs incurred.

The traveller may terminate the package travel contract without paying a cancellation fee before the start of the package in the event of unavoidable and extraordinary circumstances occurring at the destination or its immediate vicinity which significantly affect the performance of the package or the carriage of passengers to the destination.

7. Changes or Cancellation by the Company

The Company reserves the right to make insignificant changes to the travel arrangements where reasonably necessary.

If the Company is required before departure to significantly alter a main characteristic of the package or cannot fulfil special requirements accepted by the Company, the traveller will be informed without undue delay and may:

• accept the proposed changes;

• accept a substitute package where offered; or

• terminate the contract and receive a refund in accordance with applicable law.

The Company may terminate the package travel contract and provide a full refund where the Company is prevented from performing the contract because of unavoidable and extraordinary circumstances and notifies the traveller without undue delay.

8. Responsibility for Performance of the Package

The Company is responsible for the performance of the travel services included in the package travel contract, irrespective of whether such services are to be performed by the Company or by third-party suppliers.

If any travel service is not performed in accordance with the contract, the traveller shall inform the Company without undue delay so that the issue may be addressed where possible.

Where a significant proportion of the travel services cannot be provided as agreed, the Company will offer suitable alternative arrangements where required by applicable law.

9. Traveller Responsibilities

Travellers are responsible for ensuring that they possess valid:

• passports;

• visas;

• health documentation;

• vaccination certificates;

• transit permissions; and

• any other documents required for travel.

Travellers are responsible for complying with applicable laws, regulations and supplier rules during travel.

The Company is not responsible for denied boarding or denied entry caused by inadequate travel documentation or traveller conduct.

10. Flights, Schedules & Transportation

Flight schedules, routes, aircraft types and transportation arrangements are subject to operational changes by airlines and other transport providers.

The Company is not responsible for operational decisions made independently by airlines, airports, air traffic authorities or other transport providers, but will provide reasonable assistance to travellers where required under applicable law.

Rights relating to air passenger compensation and assistance may additionally arise directly against airlines under applicable aviation regulations.

11. Accommodation & Activities

Accommodation standards and classifications reflect local standards in the relevant destination and may differ from Icelandic or international classifications.

Certain excursions and activities may involve inherent risks. Travellers are expected to follow all instructions and safety requirements provided by operators and guides.

12. Limitation of Liability

Nothing in these Terms excludes or limits rights granted to travellers under mandatory applicable law.

The Company shall not be liable for losses resulting from:

• acts or omissions attributable to the traveller;

• unforeseeable or unavoidable acts of third parties unconnected with the provision of the travel services;

• unavoidable and extraordinary circumstances.

Where liability may legally be limited, the Company’s liability shall be limited in accordance with applicable international conventions and Icelandic law.

This limitation does not apply to personal injury or damage caused intentionally or through gross negligence.

13. Assistance During Travel

If a traveller is in difficulty during travel, the Company will provide appropriate assistance without undue delay, including:

• information regarding health services, local authorities and consular assistance;

• assistance with distance communications;

• assistance in finding alternative travel arrangements where appropriate.

The Company may charge a reasonable fee for such assistance where the difficulty has been caused intentionally or through the traveller’s negligence.

14. Travel Insurance

The Company strongly recommends that travellers obtain comprehensive travel insurance covering cancellation, medical expenses, interruption, baggage and personal liability.

15. Complaints

Any deficiency in the performance of the package should be reported promptly during the trip so that reasonable efforts can be made to resolve the matter.

Complaints following travel should be submitted in writing within a reasonable time after completion of the package.

16. Data Protection

The Company processes personal data for booking, operational, accounting and legal purposes in accordance with applicable Icelandic and European data protection legislation.

Personal data may be shared with suppliers and service providers where necessary for the performance of the travel arrangements.

17. Governing Law & Jurisdiction

These Terms & Conditions are governed by Icelandic law.

Any disputes arising in connection with the package travel contract shall be subject to the jurisdiction of the Icelandic courts.