The travel industry has been given 12 weeks to respond to the Government’s proposed changes to the Package Travel Regulations (PTRs), which include removing some domestic holidays from the rules.
The Government said it ‘wishes to deliver economic growth and consider ways to to make the regulations better suited to the needs of UK travellers and organiser, particularly for those holidaying in the UK’.
Subject to the outcome of the consultation, the Government will make a final decision on whether and how to change the 2018 PTRs.
The consultation includes proposals to:
- *exempt domestic (UK) holidays that do not contain a booked travel element from the regulations
- *reform linked travel arrangements (LTAs) by either removing or simplifying the definition of LTAs
- *set a time limit for third parties to provide redress to organisers where the third party has contributed to an event but has not already provided redress directly to the consumer – this is due to difficulties some package organisers have recouping refunds from suppliers
- *make clearer what services are within the scope of the regulations, and reform measures around insolvency protection
ABTA Director of Public Affairs Luke Petherbridge (pictured) said: “We very much welcome the Government’s overall focus on promoting growth and would encourage ministers to explore ways that regulatory burdens on travel businesses can be reduced.
“Whilst ABTA has long championed the benefits of consumer protection, which helps underpin the consumer confidence that is vital to the success of the travel industry, there are several areas where the current regulations have either proven unworkable or where existing rules places a disproportionate burden on the travel organiser.
“ABTA has already put forward several proposals for reform that we believe align with the Government’s growth agenda.
“We look forward to consulting with members between now and June to ensure their voices are heard and will be organising a range of opportunities over the coming weeks to gather member views.”
AITO expressed frustration at the Government’s proposals, saying they appeared to ‘sideline the needs of outbound travel businesses in favour of UK staycations’.
AITO Head of Industry Affairs Christina Brazier said: “Tour operators will continue to face overwhelming burdens and effectively act as ‘insurers of last resort’ to care for customers in situations beyond their control, while travel insurers and suppliers evade accountability – recent disruptions at Heathrow airport being a prime example.
“Furthermore, SMEs (small & medium enterprises) will remain constrained by a regulatory framework that fails to acknowledge their distinct challenges, despite operating under vastly different conditions from larger travel businesses that require tailored regulations.
“With the CAA’s ATOL Reform also underway, we, and many others in the industry, consistently urged Government departments to work together to create one simple, streamlined regulatory regime. Yet, the current overlap of financial protection measures looks set to continue – escalating costs and administration burdens for tour operators whilst prolonging consumer confusion.
“The Government has missed a key opportunity for meaningful reform, opting instead for minor tweaks that will make little difference to businesses or consumers. We will consult with our members on these proposals and urge policymakers to rethink their approach, working collaboratively with the industry to deliver real, impactful change.”
