As you may be aware, the new Package Travel Regulations (PTRs), issued by The Department for Business, Energy & Industrial Strategy in the UK, came into force earlier this month (1st July 2018). It is governed and protected either through the Civil Aviation Authority (CAA), Bonding (ABTA, ABTOT, BCH), Insurance or the Trust Accounts.
What’s all the fuss about?
Under the 2018 PTRs, a traveller can be any individual and can include some business travellers (subject to certain exemptions), this is applicable to the sale of packages and linked travel arrangements (LTAs) throughout the UK.
The new PTRs cover two types of travel arrangements:
1. Package Holidays
This is often a complex combination of travel services from transport, accommodation, and may also include other services such as excursions and vehicle hire. This is normally paid via one travel company for one combined price and who the contract of sale is with or to whom the sale was made via in a single booking process.
2. Linked Travel Agreement
The Linked Travel Agreement is a new arrangement under the Package Travel Regulations. It includes two or more travel services but applies when the customer makes a single visit to a shop or website and selects and pays for each service separately, and a clear distinction of multiple contracts of sale has been received and entered into between the customer and the merchant.
Both of these arrangements have different levels of protection. The Package Holiday regulations state the Package organisers must obtain security that covers the reasonably foreseeable costs of and delivers effective and prompt return of all payments made by the traveller for services not performed, and for the travellers’ effective and prompt repatriation in the event of the organiser’s insolvency. For businesses selling package holidays in the UK, they must have insolvency protection through ATOL (administered by the CAA) for Flight Packages. For a business selling non-Flight Packages in the UK they must have one of the following options; Bonding, Insurance or Trust Account.
What does it mean to travel companies?
• Clearer definitions of what constitutes as a package and an LTA
• Clearer guidance about client protection and related requirements
• Eliminates the “grey-areas” of who should be liable for assistance and protection
• More information, better protection
What does it mean for customers?
• Clearer knowledge of what they are buying either Package or LTA
• Defined channels of whom to contact if they experience an insolvency query Better pricing comparatives on Package and LTAs