Upcoming changes to the Package Travel Regulations (PTRs)

Changes to the PTRs will take effect in April next year

They are being made in two areas:

Linked travel arrangements (LTAs) are being abolished and the definition of package is changing
Package holiday organisers could enjoy better rights in respect of their suppliers

LTAs are being abolished and the definition of package is changing

This change may well affect travel agents.

The first type of LTA will become a package. This is, in essence, where an agent sells two or more travel services from different providers to a customer during a single visit to or contact with the agent where the customer chooses and pays for the services separately. Anyone facilitating these kind of sales will, from April, be selling packages and must comply with all the package obligations e.g. financial protection, liability for the services.

The second type of LTA is being removed. This is where a client buys one travel service, then is passed to a second trader and buys another service within 24 hours. This type of sale will no longer require financial protection to be arranged, or information to be provided to clients.

How does this affect you?

If you currently sell LTAs, after 6 April any compliance you have in place for LTAs can be removed. For example, if you arrange financial protection for the second type of LTAs. Also, statements on your website or literature, for example “If, after selecting and paying for one travel service, you book additional travel services for your trip or holiday via our company/XY, you will NOT benefit from rights applying to packages under the Package Travel and Linked Travel Arrangements Regulations 2018…. the travel services will become part of a linked travel arrangement.” etc should be removed when the new law takes effect.

It’s important that you consider whether you will be covered by the new definition of package. A package will be created where a customer books one travel service (e.g. a flight) and then selects and books another (e.g. accommodation), in separate transactions during a single visit to or contact with your point of sale (e.g. a website, app, or shop).

Travel agents with retail shops will be creating packages, if a customer comes in and books a travel service, and then decides that they need a second service, during the same visit. For example, they book a flight and you arrange this with the airline, then they make a separate booking for a car with a car hire company.

From April you would need financial protection appropriate for a package for these sales, and to provide the correct booking conditions and information to clients. The Government will be issuing guidance soon which could help you to determine how this change does affect you e.g. on the meaning of ‘single visit to or contact with’ a point of sale. You can contact us for advice; speak to your normal ABTA financial protection contact or get in touch with Member Support, details below.

Package holiday organisers could enjoy better rights in respect of their suppliers

Regulation 29 of the PTRs is being enhanced. This deals with an organiser’s right to pursue claims against a supplier when the supplier is at fault. The new regulation will require suppliers to provide a refund to organisers within 14 days in the event of cancelled services. It will also clarify that the PTRs provide a ‘right to redress’ when compensation etc is paid out by package organisers. The new text reads:

Right to a refund

29A.—(1) Where—

(a) a third party has agreed to provide a travel service.

(b) the travel service forms part of a package provided by the organiser or, in a case under regulation 27, the retailer to a traveller; and

the third party must refund to the organiser or, in a case under regulation 27, the retailer any payments which the organiser or retailer has made to the third party within 14 days.

(2) The 14 days referred to in paragraph (1) commence on the earlier of the day—

(a) following the day on which the third party cancels the performance of the whole or part of the travel service; or

(b) on which the relevant travel service was due to be performed.

(3) The third party may deduct from any refund that they are required to make under paragraph (1) any refund of the price of the travel service described in paragraph (1) that the third party has paid to the traveller, in respect of the non-performance or cancellation, under the passenger rights legislation or the international conventions as defined in regulation 16(10).

Right of redress

29B. Where an organiser or, in a case under regulation 27, a retailer—

(a) pays compensation,

(b) grants a price reduction, or

the organiser or retailer has a right of redress, including damages, from any third party which contributed to the event triggering the obligation to pay compensation, provide a price reduction or meet other obligations under these Regulations and may bring a claim in civil proceedings to enforce that right.”

Next steps

Guidance on the changes is being prepared by the Department for Business, Innovation, Science and Trade. ABTA is feeding in members’ views to this process. It is expected to be released around September and we will keep you updated.

The revised regulations will apply to bookings made after 6 April 2027.

If you have any questions, please contact Member Support on membersupport@abta.co.uk or 020 3117 0597.

Relevant documents

Current Package Travel Regulations

Consultation response from Government

Amendment Regulations