UK travel association Abta will seek clarification from the UK Department for Business (Beis) on a German interpretation of the new EU Package Travel Directive (PTD).
Passed in May, this will allow German travel agents to sell two or more travel products from different suppliers for a single payment without this becoming a ‘package’ if they issue separate invoices but charge a single payment
The PTD defines a ‘package’ as: “A combination of at least two different travel services for the purpose of the same trip, if… combined by one trader… irrespective of whether separate contracts are concluded.”
Abta legal services director Simon Bunce said: “This will end up in court. We’ll pick this up with Beis for clarification.
“It contravenes the definition of a package. I would not advise our members to act in this way.”
Bunce added: “I can’t see it’s going to fly. The first time you get a problem, the customer will claim they bought a package.”
The German text states: “Where the traveller selects travel services separately and commits separately to payment of each, but… [makes] a payment jointly, no package is made.”
It cites “Federal Court of Justice case law” to justify this interpretation, despite all case law pre-dating the PTD.
The German text also concedes this interpretation “is called into question by the wording of the directive”.
However, it states: “The EC has clarified that ‘paid separately’ should be understood as meaning that even . . . in the case of a joint payment.”
It also notes: “The EC concluded . . . clarification at national level is possible for situations where separate selection of travel services are available.”
That would suggest the UK government could do the same.
Abta has sought but received no clarification from the EC on this point. Attendees at a meeting with Commission representatives on implementing the PTD last month also say no mention was made of the ‘German exception’ for agents.
The UK industry still awaits a government consultation on implementing the PTD, due to come into force next year.
However, the UK government confirmed its intention to legislate on travel protection this week.