The Bundesgesetz über Pauschalreisen (PRG) / Swiss Federal Law on Holiday Packages gives the definition of a package travel. According to § 18 «the organiser of holiday packages must provide financial protection for your money and bring you home if necessary... if that company goes out of business» (free translation – original wording in German – see right). The consumer can ask for proof of the legally required safeguards, which is normally one of the three providers for such funds. If the tour organiser cannot provide this proof, the consumer has the legal right to cancel the contract at no costs!
It is therefore essential to make your holiday booking only in a travel agency or with a touroperator or internetportal, that can provide proof of your money's financial protection!
The funds for consumers financial protection are presented here.