The following article was written by Meera Tharmarajah – Solicitor, ABTA for the Spring edition of Travel Law Today, which can be downloaded here. Register for the virtual Travel Law Seminar on 19 May 2021, visit abta.com/abtaevents. Early bird discounts are available until 7 May.

On 1 January 2021, the 2015 EU Directive on Package Travel and Linked Travel Arrangements ceased to
apply to the UK and amendments to the Package Travel and Linked Travel Arrangements Regulations 2018
(PTR 2018) took effect as a result of the Package Travel and Linked Travel Arrangements (Amendment)
(EU Exit) Regulations 2018. In the most part, the amended PTR 2018 remain the same as before 1 January 2021 except for the rules relating to the financial protection required for the sale of package holidays in the UK and in EU Member States, including Ireland.

The changes, as they relate to the UK and Ireland and effective from 1 January 2021, are summarised below.

• Ireland no longer recognises the financial protection arrangements prescribed by the PTR 2018 as amended (ATOL for flight-based packages and bond, insurance or trust account for non-flight packages) for package organisers established in the UK that sell packages to customers in Ireland.
• Package organisers established in Ireland who sell packages to customers in the UK must comply with the financial protection rules contained in the amended PTR 2018.
• Agents, established in the UK, who sell packages combined by an organiser established in Ireland could become liable for the performance of the package under Part 4 of the amended PTR 2018 and for the financial protection obligations to customers under Part 5 of the amended PTR 2018 unless they can show that the Irish organiser fulfils those requirements.

Are you selling packages to customers in Ireland?
As a UK-established organiser or agent, you will generally know whether or not you are selling to customers in Ireland. In less clear cases, an assessment of whether you sell or target sales of packages to customers in Ireland will involve consideration of the below, non-exhaustive, list of indicators.

• Your website domain name. Do you use a UK domain name (eg “.co.uk”) or an Ireland domain name (“.ie”) or a neutral domain name (eg “.com”, or “.eu”)?
• Your business and/or customer contact telephone numbers.

Do you use a UK code or an Irish code?

• Are a significant number of your advertised departure pointt in Ireland?
• Do you advertise your packages and accept payment in Euros?
• Are a significant proportion of your customers based in Ireland?
• Do you show feedback or testimonials on your website or brochures in respect of your packages from customers who are based in Ireland?

If your sales, online or otherwise, are only targetted to customers in the UK but, from time to time, you happen to sell packages to customers in Ireland to whom you are not directing or targeting sales, those sales are likely to be subject to the financial protection rules in the amended PTR 2018. You are unlikely to be subject to the financial protection rules mandated by the relevant legislation in Ireland.

Sales of packages to customers in Ireland by organisers or agents established in the UK If you are an organiser or agent which is established in the UK and intends to sell packages to customers in Ireland, you will need to protect those sales under the relevant legislation in Ireland. However, if you are not established in Ireland, you cannot obtain an Irish tour operator’s or travel agent’s licence from the Commission for Aviation Regulation (CAR).

“Established” is defined under Irish legislation, the Package Holidays and Travel Trade Act 1995, and under EU law to mean “the actual pursuit of an economic activity… by the provider for an indefinite period and through a stable infrastructure from where the business of providing services is actually carried out”.

If you are an organiser established in the UK and wish to sell packages to customers in Ireland, you must notify CAR of this and of the nature and amount of the security that you have arranged before carrying on any business in Ireland. You must have in place financial protection (currently full indemnity insurance) which has been approved by CAR.

If you are an agent established in the UK and wish to sell packages to customers in Ireland and you cannot show that the organiser established in the UK has financial protection in place which has been approved by CAR, you must provide security to the satisfaction of CAR.

Sales of packages to customers in the UK combined by organisers established in Ireland and sold by agents established in the UK
If you are an agent established in the UK and sell packages to customers in the UK combined by an organiser established in Ireland then, under regulation 27 of the amended PTR 2018, you must provide evidence that the Irish organiser has adequate financial protection arrangements in place. You should also ensure that they accept responsibility for the performance of the package services. In the absence of such evidence you, as the agent, may be liable for the performance of the package under Part 4 of the amended PTR 2018 and/or the financial protection obligations to customers in Part 5.

Sales of packages to customers in the UK by organisers and agents in Ireland
If you are an organiser or agent established in Ireland and sell packages to customers in the UK, you are subject to the financial protection rules contained in the amended PTR 2018.