The Package Travel Regulations will be in the spotlight again next month as the European Union launches a UK-wide consultation as part of an ongoing review of the law.

Abta head of legal services Simon Bunce said the review will take into account moves by low-cost airlines to add click-throughs to accommodation-only websites, and wider issues concerning what constitutes a package holiday.

He said: “I think the EU commission will be far more effective than the Labour Government in resolving this, as Brussels has shown it is much more prepared to take on the airlines.”

Meanwhile Bunce urged the Civil Aviation Authority to tighten its vetting procedures for new operators if the proposed £1 passenger levy scheme gets the go ahead.

He said this would weed out criminals trying to set up illicit tour operators in order to take advantage of the changing legislation which allows them to commit less of their own money.

He added: “It does require the CAA to really beef up the monitoring of ATOL holders in order to make sure that companies that aren’t legitimate don’t get into the scheme.”

But he said the chances of this would be lessened by a move to make companies pay for their own bonding for the first three years after they have acquired their ATOL licence before they can then access the £1 levy scheme.