|in million €||31 Dec. 2017||31 Dec. 2016|
|Contingent liabilities from guarantees||147.2||113.4|
|Contingent liabilities from warranties||8.1||8.2|
|Other contingent liabilities||69.9||60.8|
Contingent liabilities from guarantees essentially concern payment guarantees to financial institutions and relate primarily to the Kuoni companies. In some countries in which the Kuoni companies operate, local laws require that travel guarantees and payment guarantees be given by the tour operator in order to hedge against the default risks of the organiser vis-à-vis the customer. These travel guarantees may fluctuate depending on the season and are particularly high during the summer season due to the high number of travellers. These guarantees have all been assumed by way of guarantee contract by RZF for the Kuoni companies vis-à-vis the banks.
Contingent liabilities from guarantee agreements include primarily letters of comfort to financial institutions for possible use by REWE partner investment companies as general partners of the associated REWE partner companies taking out the loans.
The other contingent liabilities relate primarily to contingent liabilities from del credere-assumptions. They arose from the joint assumption of liabilities from goods purchased from member operations and invoiced only in the subsequent year.
In addition, there are obligations in the Travel and Tourism business segment amounting to 686.1 million euros (previous year: 268.2 million euros) from guaranteed quota contracts with hotels and various airlines as well as prepayment obligations agreed with hotels. The increase was attributable primarily to the fact that guarantees issued to hotels were increased.