Industry urges govt to grasp the nettle after ministers lift lid on new package rules
Harry KembleThe government has lifted the veil on its long-awaited plans to reform the Package Travel Regulations (PTRs), drawing a cautious welcome from the travel industry – but one expert has described some of the proposals as “unacceptable” and, in places, “crazy”.
Key tenets include deregulating domestic holidays, setting a minimum cost threshold for package rules to apply, simplifying – or removing completely – Linked Travel Arrangements (LTAs), and clarifying the redress from third parties rule.
Lobby partners the Advantage Travel Partnership and Aito welcomed the announcement from the government’s Department of Business and Trade (DBT) and the accompanying 12-week call for evidence.
“[We] are pleased to see the views we consistently express on the complexities of the current parallel regulatory regimes are being taken into account.
“Despite the challenges we have faced, the UK outbound travel sector remains a key contributor to the economy. We look forward to working with the government on both domestic and international travel regulations.”
The PTRs were born of the UK’s interpretation of the EU Package Travel Directive.
Together, Advantage and Aito said they’d like to see the government “take advantage of the opportunities presented by Brexit” to create a new “joined up” regulatory framework that works for travel businesses and consumers.
Both bodies will consult their members over the coming weeks, as will Abta. In a statement, it said its response would be guided by its membership.
However, within a few hours of the DBT’s announcement, legal advisor to the Association of Atol Companies (AAC), Alan Bowen, had sent a 1,600-word missive to members on the proposals.
“I would say I agree with around half of the proposals,” Bowen told TTG. “There are some positive ones, but some I think are crazy – and I would hope other people would think they were crazy too.”
Bowen, speaking in a personal capacity, described the proposal to exempt packages below a certain value threshold from the rules as “unacceptable”.
“The government is suggesting that people who have less to spend on a holiday deserve less protection,” he said.
Removing domestic package holidays from the regulations, he added, was “crazy”. “When Shearings Holidays collapsed in 2020 there were around 64,000 passengers either on holiday or about to travel,” he explained. “If passengers were in John o’Groats, how do they get home?
“We don’t have many members who sell domestic travel, so the AAC is not going to comment much on this, but on a personal level, I think that’s crazy. I don’t see the logic whatsoever.”
Bowen, though, does back the scrapping of LTAs. “They should disappear,” he said. “They offer customers very little and, if not explained properly, can turn into packages with all the risks that they entail.”
In its consultation prompt, the government has asked travel organisers to share their experiences of seeking compensation from suppliers within 14 days of a contract being terminated, following the refund crisis travel endured during the early stages of he pandemic.
It proposes making allowances in the PTRs for “extreme circumstances”, adding consumers would “understand what they can demand from organisers... while also recognising challenging realities for businesses”.
Bowen said: “The government realises things are not clear and we should make this clearer. We would say yes, absolutely. Operators currently have to refund within 14 days. This never actually means 14 days or 14 weeks or 14 months. We can either forego the 14-day limit or extend it. When there are exceptional circumstances, we should extend it.”
The call for evidence will run into December. Business minister Kevin Hollinrake said the consultation would cut red tape and “give the sector a much-needed boost”.
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