The government launched a review of the Package Travel Regulations (PTRs) this morning which will include proposals to remove UK domestic package holidays from the regulatory requirements.
A 12-week ‘call for evidence’ on the PTRs by the Department for Business and Trade (DBT) will form part of the government’s ‘Smarter Regulation to Grow the Economy’ programme launched in May.
The PTRs, which came into force in 2018 in line with the EU Package Travel Directive (PTD) of 2015, were due for review after five years and the European Commission is well underway with a review of the PTD.
More: Trading Standards calls for new powers to enforce the PTRs [June 23]
UK accused of ‘tinkering’ with Package Travel Regulations [May 23]
An informal review of the PTRs last year by what was then the Department for Business, Energy and Industrial Strategy (BEIS) suggested any changes in the UK would be relatively minor.
However, the DBT is now considering more substantial reforms, in part because the government’s Retained EU Law (REUL) Act requires a review of all EU law and removal of regulations considered not to work well.
Proposals in the call for evidence document include the removal of UK domestic package holidays from the regulations, removal of arrangements which do not include travel – such as a hotel stay with an activity – and removal of packages below a certain price threshold.
The consultation also includes proposals for scrapping Linked Travel Arrangements (LTAs), a category of booking introduced in 2018 which remains little understood, or for bringing LTAs within the definition of a package.
In addition, the DBT proposes to clarify and simplify the definition and scope of “other tourism services” in the definition of a package, and to consult on increased flexibility in the provision of insolvency protection.
The department will be interested in evidence that changes in the regulations can drive growth while maintaining consumer protection.
Following analysis of the feedback, the DBT plans a follow-up consultation on detailed proposals in the first half of 2024.
Travel Weekly understands the call for evidence has been ready for launch for some time, awaiting sign off by the business and trade secretary.
The Department for Business and Trade confirmed: “The consultation will look at areas including whether the same set of regulations for international holidays are needed for UK-based package holidays, as well as making current rules more proportionate to businesses including where current industry groups say they are dissuaded from offering package style arrangements because of disproportionate regulatory burdens.
“They will consider how package travel rules could be simplified and unnecessary burdens could be lifted with the result that businesses offer more choice, at competitive prices, to consumers.
“This consultation comes as the travel industry recovers from the pandemic, offering an opportunity to reflect on where improvements could be made to unlock growth and deliver better outcomes for customers, including in unforeseen circumstances or in the face of significant disruption.”
Business minister Kevin Hollinrake said: “Our domestic travel industry is crucial to our economy, but many holiday companies are faced with often over-burdensome regulations that make it difficult for them to grow and thrive.
“Today’s consultation is a major step to cutting red tape, which could benefit millions of British holidaymakers and give the sector a much-needed boost for the future.”
The review of the PTRs is separate from reform of the Atol scheme, overseen by the Civil Aviation Authority (CAA) and Department for Transport (DfT), despite all organisers of flight-inclusive packages requiring an Atol licence.
A reform of Atol was launched in April 2021 and a CAA consultation on detailed reform proposals is expected this autumn.
While is not a key announcement today, the consultation document does reference the ongoing work by the DfT and the CAA to reform the scheme.
It also identifies that DfT is also reviewing the enforcement options available to the CAA to ensure that they have the right tools for the purposes of maintaining compliance with the Atol scheme.
An Abta spokesperson said: “We have just received the Department for Trade and Business’s announcement of a consultation on possible wholesale review of the Package Travel Regulations.
“Following careful analysis, in due course we will be consulting with our members whose views will inform and guide our response.”
Which? policy and advocacy director Rocio Concha said: “It is important to ensure that the Package Travel Regulations can continue to deliver for travellers as the travel industry evolves, and it is also essential that any review of the PTRs requirements on businesses does not come at the expense of travellers’ rights, particularly in light of the repeated episodes of serious disruption we’ve witnessed across the travel industry in recent years.
“The government must take this opportunity to show that it is on the side of beleaguered travellers, and while cutting unnecessary red tape, ensure the right level of consumer protection is afforded to domestic packages when things go wrong.
“This should apply to all types of package holidays, including domestic breaks in the UK, to avoid creating more confusion for travellers when booking a package holiday.”