In 2018, the Package Travel and Linked Travel Arrangements Regulations 2018 was passed – replacing the previous, evidently defective, directives dating back to 1992.
The new regulations were brought about following EU recognition of the changing methods of sale available (particularly, but not only, online booking) which enabled many to ‘get around’ the intention of the previous regulations, targeted at traditional ‘holiday package’ organisers such as high street travel agents.
The new Regulations not only clarified the position by broadening the definition of a ‘package’ to encompass the (then) new ways of purchasing package holidays online, but also created the new concept of Linked Travel Arrangements (LTAs), which are looser combinations of “packaged travel services”. These now require “traders/organisers” (firms and individuals creating travel packages which make up an LTA) to put in place ‘insolvency cover’ to protect travellers/tourists in the case of the ‘package’ services being “not performed” as a consequence of that trader’s/organiser’s insolvency.
In addition, the new Regulations require ‘Package Organisers’ to provide clear information for travellers/tourists explaining what travel product they are buying and the corresponding level of financial protection.
Liability for the “performance of the package” is also placed explicitly on the ‘trader/organiser’ regardless of whether the services are performed by themselves or third parties such as hotels, caterers etc.
By definition, now, package holidays will offer a combination of services that might include
- travel,
- accommodation,
- meals/sustenance
- tours,
- events etc.
A problem with the delivery of one such service may affect the delivery of others, so by making the ‘trader/organiser’ responsible for the whole package, the consumer is saved from having to deal with multiple parties if something goes wrong.
To what do the 2018 regulations apply?
- The new Regulations apply to
a. packages offered for sale or sold by traders/organisers to travellers, and
b. linked travel arrangements, - The Regulations do not apply to
a. packages and linked travel arrangements covering a period of less than 24 hours, unless overnight accommodation is included.
b. packages offered, and linked travel arrangements facilitated, occasionally, on a “not for profit basis” and/or for a limited group of travellers (e.g. schools & clubs).
c. packages and linked travel arrangements purchased and based on a general agreement
Information duties and content of the package travel contract
Part 2 of the Directive sets out who must supply the traveller with a defined list of information about the package arrangements. Failure to accurately detail this information could be deemed a criminal act.
Limited companies and partnerships should take care to ensure that they have Directors and Officers cover in place alongside their public liability, tour operator’s liability and professional indemnity insurances to avoid potential gaps in insurance cover.
In Part 3, the new Regulations say how variations to bookings must be handled. It explains passengers’/tourists’ rights and what costs can and cannot be passed on when changes are made.
Generally, these are risks and costs faced entirely by the organiser who should check carefully the contractual terms agreed with the third-party suppliers (hoteliers, caterers etc.) of the individual components of the package.
Explanation of names/titles:
Tourist, Passenger, Traveller:
The person buying the package
Provider/Supplier:
The person or business providing one or more elements of the package
Trader/Organiser:
The person or business creating the package
Tour Operator:
The person selling the package
