ABTA and ABTOT have welcomed the Government’s response to the Package Travel Regulations (PTRs) consultation, which proposes two key changes to Linked Travel Arrangements (LTAs).
However, AITO said it was disappointed, with Head of Industry Affairs Christina Brazier stating the proposals are ‘limited to minor tweaks that fall far short of what is needed and offer little improvement for businesses or consumers’.
The Department for Business & Trade (DBT) published its response today (Tuesday) following a consultation that ran from April to June 2025, which received 113 responses.
The Government said the Package Travel and Linked Travel Arrangements Regulations 2018 ‘work well on the whole but would benefit from specific targeted improvements’.
It confirmed it will propose to simplify rules around LTAs, which it described as ‘a burdensome and confusing requirement’ and often misunderstood by consumers.
LTAs are combinations of at least two travel services, such as flights, accommodation, car hire and other tourist activities, sold together but not considered as a package.
There are currently two types of LTAs:
- Type A occurs when a travel company arranges for customers to separately select and pay for multiple services during a single visit to a shop or website session. For example, booking a flight and then separately booking a hotel during the same visit.
- Type B happens when a customer books one service (such as a flight) and is then offered another service from a different provider within 24 hours – such as receiving an email with a hotel booking link after purchasing a flight.
The Government will propose absorbing LTA Type A into the package definition, providing full package protections when consumers make bookings in circumstances similar to current Type As, while removing Type B LTAs entirely.
The removal will allow small domestic providers, such as B&Bs, to recommend local activities without triggering package regulations.
The Government is also proposing to modify Regulation 29, introducing a 14-day refund period for cancelled services and a ‘right to redress’, to help organisers recover costs from suppliers more effectively.
However, no changes will be made regarding protection on domestic-only packages, which caused ‘split opinion’ among respondents, according the Government.
ABTA Director of Public Affairs Luke Petherbridge said: “ABTA is pleased that the Government’s response recognises that the Regulations generally work well. This has been shown through COVID and some major failures. During the review process we have consistently argued that there is no need for a major overhaul that would place increased burdens on travel companies. We support the intention to improve clarity around certain definitions and around the rights of travel companies to seek redress from suppliers when arrangements change.
“ABTA also welcomes the Government’s commitment to explore other concerns raised during this consultation process. We look forward to engaging constructively on these topics, which we believe could contribute positively to the government’s growth agenda.”
ABTOT Membership Director Samantha Bradbury said: “ABTOT wholeheartedly supports the decision to maintain financial protection for domestic packages as well as to extend the definition of a package by incorporating type A LTA sales and abolishing type B LTAs.
“Clarity and understanding is key for both industry and consumer confidence, as well as enforcement.”
However AITO’s Christina said: “We had hoped that the Government’s stated aim to support growth for the industry and deliver a more proportionate legal framework would result in meaningful reform to redress the balance and ease unnecessary regulatory burdens, particularly for SME tour operators.”
She added members ‘continue to take the hit and face crippling costs for events outside of their control’, highlighting how one member was left £20,000 out of pocket during the Heathrow power outage ‘for doing the right thing by their customers’.
“However, we recognise the constraints of the current legislative framework and note the government’s acknowledgement of the more fundamental issues that require further review,” she added. “We welcome their commitment to explore these areas further and urge them to confirm clear timescales for progressing this work.”
Legislation is expected to be passed in Parliament by June 2026, with a roll out in the autumn.
