Holidays are usually a significant expense for UK consumers and ONS figures have indicated that UK spending on package holidays is rising again after a dip caused by the pandemic.
The Package Travel Regulations
With this in mind, the UK government is consulting on proposed reforms to the Package Travel and Linked Travel Arrangements Regulations 2018 (PTRs). The PTRs include a series of requirements for organisers of package holidays which aim to provide bespoke protections for travellers.
The PTRs can be enforced directly by the Competition and Markets Authority using their new enforcement powers under the Digital Markets, Competition and Consumers Act 2024. We've blogged a lot about these new powers (see our Consumer Law Hub), which enable the CMA to levy penalties of up to 10% of a business' annual global turnover for breaching consumer law.
Government thinking behind the consultation
The government wants to do a balancing act with the PTRs. Whilst ensuring that the regulations give consumers appropriate protections and confidence to book package holidays, the government also aims to support growth in the travel sector and encourage innovation and collaboration by ensuring that the regulations are clear, flexible and work well for business too.
The government says that there are some circumstances where the PTRs may no longer be fit for purpose and relevant and, in these cases, the balance between consumer protections and burdens on businesses may not be right. Unnecessary regulatory burdens may stand in the way of organisers providing diverse and cost-effective options for travellers.
Key Proposals
A key change proposed by the consultation is to exempt domestic (UK) holidays that do not contain a booked travel element. The idea behind this is to encourage businesses to offer more accommodation and other tourist services in the UK by reducing the number that would fall within the scope of the regulations.
The consultation also considers reforming linked travel arrangements (LTAs). These combine, in specified circumstances, two or more travel services for the same trip or holiday but which are sold under separate contracts and do not meet the requirements of a package. The government proposes ways in which the operation of LTAs could be simplified.
To respond to difficulties some package organisers have had recouping monies from suppliers, the consultation examines the case for setting a time limit for third parties to provide redress to organisers where the third party has contributed to the event but has not already provided redress directly to the consumer.
Wider Landscape
The government is also considering changes to wider travel and aviation rules, led by the Department for Transport (DfT). The DfT and the Civil Aviation Authority are currently considering changes to the ATOL regime. The ATOL and PTRs regimes exist in parallel. The government aims to ensure that there is joined-up thinking as it moves forward to develop and strengthen both frameworks.
Timeline
Businesses in the travel sector may wish to consider the practical impact of these proposals. The consultation ends on 30 June 2025.
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