'Travel mustn't let government set the agenda for reform'

The other factor that will be espoused by ministers and officials as influencing their review of the PTRs, and other consumer protection legislation, is the need to reinforce consumer rights post-pandemic. We’ve already seen the Civil Aviation Authority cite this as one of their drivers for the ongoing reforms of the Atol scheme.

With industry submissions to the recent request for information currently being scrutinised by the CAA, we expect the second phase of the consultation process – which will include firm proposals on how travel businesses must protect consumer monies in future – by the autumn. While officials insist no decisions have been made, the CAA has intimated heavily – before, during and following the recent industry engagement exercise – that segregation of customer monies in some form will be part of their answer. If so, that will usher in fundamental changes to the way many businesses in our industry operate.

The post-pandemic review of consumer laws could see changes in other areas too, as the government is yet to respond to the Aviation Consumer Policy Framework consultation held in early 2022. The consultation contained questions around a host of measures related to consumer rights, including increased powers for the CAA, mandating alternative dispute resolution for UK airlines, changes to compensation for delays and cancellations, and amendments to accessibility rules.

Similar pressures apply in Europe, with the European Commission expected to publish proposals to revise the EU Package Travel Directive and Air Passengers Rights by the autumn. Elections to the European Parliament are due in May 2024, and the commission mandate will expire on 31 October 2024, so there is an extremely short timeframe for either proposal to be revised, agreed, and approved.

’Electoral lens’

However, all sides will be keen to secure agreements to demonstrate consumer wins. While future changes to the PTD will only now apply to UK companies that offer holidays for sale to consumers in the EU, any changes to key definitions or provisions will be followed with interest by UK officials, especially given the reviews will overlap. Meanwhile, APRs continue to apply directly to all flights departing the EU, so will have direct relevance for UK-based travel businesses, airlines, and travellers.

Against this backdrop, the important thing for the industry will be to continue to engage consistently in an evidence-based manner with politicians and officials. With reforms under way that will shape the future of consumer protection for years to come, and with politicians likely to be looking at decisions through an electoral lens, there is a risk of decisions being taken that have short-term electoral appeal, but which carry longer-term costs and risk for businesses.

We must all remain vigilant to avoid that outcome and to ensure whatever changes emerge enable travel businesses to build back from the pandemic and to trade successfully into the future.

Luke Petherbridge is Abta’s director of public affairs. This piece was written for issue 15 of Abta’s Travel Law Today magazine, which will be published at Abta’s upcoming 25th anniversary Travel Law Seminar over 10-11 May. Petherbridge will be among the speakers at the event. To find more information and register, visit abta.com/events.