Package Travel Directive & Regulations

Background

The Package Travel Directive (PTD) came into effect in 1990 and its provisions were introduced into UK law through the Package Travel Regulations (PTR) in 1992.

The PTD and PTR introduced requirements on the organisers and sellers of package holidays to provide greater protection to purchasers of package holidays in three main areas: 

• The provision of information; 
• The provision of security arrangements for monies paid for package holidays and for repatriation in the event of company failure; 

A specific regime for contractual liability in respect of package holidays.

The PTD and PTR have contributed significantly to consumer protection rights and, following changes in the marketplace for travel services, they are under review. 

The Package Travel Directive
The PTD is currently under review as part of the European Commission’s review of the Consumer Acquis (see Consumer Protection: EU Revision of the Community Acquis on Consumer Protection). The Consumer Rights Directive, which does not include package travel, was adopted on 10 October 2011. This will lead to different levels of protection between customers booking package holidays and those booking other forms of travel arrangements.

The Commission’s November 2009 consultation sought opinions from the travel industry on the scope of the PTD, the level of financial protection consumers should expect from travel agents and tour operators, who should be responsible for any consumer problems, the level of information that consumers should be provided with and other aspects of how the sector operates.

The Commission is developing policy options. Proposals have slipped back again and are now expected in late 2012. It’s understood that the Impact Assessment Board will consider proposals alongside the Airline Insolvency proposals (i.e. coordination with DG MOVE on air passenger rights). This would be followed by the drafting and committee process with potentially a new directive being agreed in 2013.

Momentum appears to be behind reform and broadening of the PTD. EU consumer research indicates consumer desire for air ticket sales to be brought into the protection regime.

The Package Travel Regulations
Responsibility for implementation of the PTRs lies with the Civil Aviation Authority for licenseable activities and these are effected through the Air Transport Organisers Licence (ATOL) regulations. Responsibility for non-licenseable activities lies with the Department for Business, Innovation & Skills (BIS).

Further information on ATOL Reform.

ABTA’s Position

The Package Travel Directive
ABTA has advocated a complete overhaul of the consumer protection regime offered under the PTD to take account of changes in the way that travel services are sold and purchased.

ABTA has been very concerned for a long time that, despite massive changes in the marketplace, changes to the Directive have been very slow in coming. We welcomed the launch of the PTD review and believe there should be a clear consistent approach to regulation applying to all sellers of similar products. We will work with the Commission to address the potential changes.

ABTA’s response to the PTD consultation included the need to reform PTD for consumer benefit and to allow fair competition; inclusion of linked arrangements and click-throughs; inclusion of standalone air ticket sales in scheme of protection; shared liability between organiser and supplier; rejection of strict liability obligation on organisers.

ABTA has suggested that in order to ensure that click-through arrangements are included within a revised Directive, the Commission might consider more creative means such as changes to the basic definition of a package.

ABTA has met with MEPs and European Commission officials to make them aware of our views.

ABTA has liaised closely with ECTAA and our sister European travel agent and tour operator associations to ensure a similar approach.

The Package Travel Regulations
Any change in the PTD will lead to changes having to be transposed in the PTRs.

ABTA is concerned that the present mechanisms for the provision of financial protection required under the PTRs and the ATOL Regulations do not provide a simple and effective mechanism which is understood by consumers or the trade.

ABTA welcomed the Government’s commitment to improving consumer clarity through the ATOL regulations and are awaiting the outcome of the consultation.

We feel strongly that the Government’s work on consumer protection for travellers, currently undertaken through BIS and the CAA’s ATOL licensing, should be delivered through a separate unitary consumer protection authority. This would bring all consumer protection required under the PTD and the PTRs under the auspices of one authority, improving the consistency and efficiency of regulation for the industry and the consumer.

last updated: 17 January 2012