Will you be caught by the 2018 Package Travel Regulations?

5th September 2017

The new Package Travel Directive which will be brought into force in 2018, sets out an expanded definition of a package and defines a package in six different ways.

With a new set of Package Travel Regulations, will you be caught in its net?

A package involves the combination of at least two of the following ‘Travel Services’

Category 1

If you combine and sell two or more Travel Services under a single contract with a ‘traveller’.

Category 2

If the travel services are selected before the traveller agrees to pay and are purchased from a single point of sale.

Category 3

If the travel services are offered, sold or charged at an inclusive or total price

Category 4

If the travel services are advertised or sold under the term ‘package’ or something similar, for instance ‘combined deal’, ‘all inclusive’ or ‘all-in arrangement’.

Category 5

If the travel services are combined after the conclusion of a contract under which the traveller can choose among a selection of different types of travel services. This isn’t a common model seem in the UK market as in other EU member states this is known as a ‘pick and mix’ gift box.

Category 6

If the travel services are purchased from separate travel companies through linked online booking processes where the traveller’s name, payment details and email address are transmitted from the first travel company to the second and a contract with the latter is concluded within 24 hours. Basically some form of click through package.

What does this mean for you?

What are Linked Travel Arrangements?

‘LTAs’ are similar to flight-plus.

Category 1

If you sell two different travel services in separate contracts and paid for separately on the occasion of a single visit or contact with your point of sale by a traveller this is an LTA.

Category 2

If you facilitate, in a targeted manner, the procurement of at least one additional travel service from another trader where a contract with the other trader is concluded at the latest 24 hours after the confirmation of the booking of the first travel service this will be an LTA.

What does this mean for you?

If a traveller has made a payment to you and then you go bust and as a result a part of the Linked Travel Arrangements are not performed because of your insolvency then you have to ensure that funds are available to cover those payments.

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