Ask the expert: The revised EU Package Travel Directive and how it may affect you
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dhewitt@abta.co.uk Wed, 04/16/2025 - 13:15
One of the consequences of our leaving the European Union was that we no longer have an obligation to incorporate EU directives into UK law.
So, the current ongoing review of the Package Travel Regulations underway in Brussels may seem irrelevant. However, apart from academic interest, whatever is finally introduced may still impact on members conducting business in the EU and may also provide food for thought to UK legislators, who are currently working on the the review of our own PTRs.
Just to remind you, The Package Travel Directive (PTD), formally Directive (EU) 2015/2302, came into force in July 2018.
The COVID-19 pandemic, along with the failure of some major travel companies, highlighted serious gaps in consumer protection. As a result, the European Commission proposed updates to the PTD to address these issues and improve consumer protections, even in times of crisis.
The process for finalising the new Directive involves three players – the European Commission, The European Council, and the European Parliament, with the Commission making a proposal that is then adapted by both the Council and Parliament, with provisions for conciliation between all players if agreement cannot be reached. Despite being published in late 2023, the European Parliament’s election in June 2024, delayed the process. As such, there has been plenty of opportunity along the way for stakeholders, such as ABTA, our European Trade Body, ECTAA, and other European travel trade body equivalents, to provide views and inputs.
The story so far, is broadly:
In late 2023, the European Commission proposed amendments which included the following key changes:
Industry bodies, including ABTA, raised serious concerns about elements of the Commission's proposals, including the prepayment cap and the expansion of what constitutes 'extraordinary circumstances’.
In December 2024, the European Council adopted their negotiating mandate for talks with the Parliament. The Council's position includes:
Crucially, the Council also proposes to remove the cap on prepayments, with member states making clear they prefer not to regulate upfront payments at the EU level. The European Parliament is currently examining the Commission’s text and has noted the following considerations.
In common with the Council, the European Parliament has also raised concerns about the Commission's proposed 25% cap on prepayments for package holidays. If this is the adopted position of both the Council and Parliament, it would be expected the proposal would be removed.
After the final text is adopted, which is expected in late 2025/early 2026, EU member states will have to adopt the new rules into national law. Typically, this takes between a few months and a year, with the new rules expected to be in place by late 2026 or in 2027 (depending on agreed implementation timelines). So, there’s a way to go, but it’s important we’re keeping an eye on what is being agreed.
Wilma Thaning, Senior UK and EU Public Affairs Executive, ABTA
Continue reading...
Full Page image
dhewitt@abta.co.uk Wed, 04/16/2025 - 13:15
One of the consequences of our leaving the European Union was that we no longer have an obligation to incorporate EU directives into UK law.
So, the current ongoing review of the Package Travel Regulations underway in Brussels may seem irrelevant. However, apart from academic interest, whatever is finally introduced may still impact on members conducting business in the EU and may also provide food for thought to UK legislators, who are currently working on the the review of our own PTRs.
Just to remind you, The Package Travel Directive (PTD), formally Directive (EU) 2015/2302, came into force in July 2018.
The COVID-19 pandemic, along with the failure of some major travel companies, highlighted serious gaps in consumer protection. As a result, the European Commission proposed updates to the PTD to address these issues and improve consumer protections, even in times of crisis.
The process for finalising the new Directive involves three players – the European Commission, The European Council, and the European Parliament, with the Commission making a proposal that is then adapted by both the Council and Parliament, with provisions for conciliation between all players if agreement cannot be reached. Despite being published in late 2023, the European Parliament’s election in June 2024, delayed the process. As such, there has been plenty of opportunity along the way for stakeholders, such as ABTA, our European Trade Body, ECTAA, and other European travel trade body equivalents, to provide views and inputs.
The story so far, is broadly:
In late 2023, the European Commission proposed amendments which included the following key changes:
- Payment Regulations: A cap of 25% on prepayments for package holidays, with exceptions for cases like full flight payments.
- Refund Obligations: Service providers would be required to refund organisers within seven days if they fail to deliver contracted services.
- Voucher Policies: Clear terms and conditions for vouchers, which travellers can accept instead of refunds.
Industry bodies, including ABTA, raised serious concerns about elements of the Commission's proposals, including the prepayment cap and the expansion of what constitutes 'extraordinary circumstances’.
In December 2024, the European Council adopted their negotiating mandate for talks with the Parliament. The Council's position includes:
- Scope Clarification: Defining what constitutes a ‘package’ and excluding ‘linked travel arrangements’ (LTAs) to enhance legal clarity.
- Information Obligations: Strengthening requirements for travel companies to provide clear and comprehensive information, especially regarding additional services booked online.
- Refund and Repatriation: Strengthening protection for consumers, particularly in cases of organiser insolvency, requiring refunds within nine months, with Member States allowed to set shorter timeframes.
- Voucher Policies: Clarifying and standardising the use of vouchers to increase their appeal and ensure consumer protections.
Crucially, the Council also proposes to remove the cap on prepayments, with member states making clear they prefer not to regulate upfront payments at the EU level. The European Parliament is currently examining the Commission’s text and has noted the following considerations.
- Balance of Protections: Ensuring the revised directive strikes the right balance between protecting consumer rights and the practical realities of the travel industry.
- Industry Impact: Assessing how proposed changes, such as the prepayment cap, might impact travel organisers, especially in terms of cash flow and service delivery.
- Crisis Preparedness: Evaluating measures to enhance the resilience of the travel sector and protect consumers during future crises.
In common with the Council, the European Parliament has also raised concerns about the Commission's proposed 25% cap on prepayments for package holidays. If this is the adopted position of both the Council and Parliament, it would be expected the proposal would be removed.
After the final text is adopted, which is expected in late 2025/early 2026, EU member states will have to adopt the new rules into national law. Typically, this takes between a few months and a year, with the new rules expected to be in place by late 2026 or in 2027 (depending on agreed implementation timelines). So, there’s a way to go, but it’s important we’re keeping an eye on what is being agreed.
Wilma Thaning, Senior UK and EU Public Affairs Executive, ABTA
Continue reading...
