The EU is considering a “root and branch” reform of package travel rules when the UK is merely “tinkering around the edges”, according to a senior industry lawyer.
Rhys Griffths, partner at Fox Williams, has contrasted the EU’s “ambition” in its current review of the Package Travel Directive (PTD) with the Department for Business and Trade’s review of the UK Package Travel Regulations (PTRs).
He told the recent Abta Travel Law Seminar in London: “PTD reform is going to be much more root and branch, looking at ways to improve the directive and review how the PTD fits with EU Regulation 261 [on air passenger rights].
“The ambition is impressive. In the UK, we’re tinkering around the edges.”
Griffiths noted the EU is looking at refunds for cancelled flights, the issue of vouchers and the status of Foreign Office advice which all caused problems during the pandemic.
However, the EC is also considering limits on consumer pre-payments, which Griffiths warned “could be problematic”.
He said: “When flights were grounded during the pandemic and package organisers had to refund all customers, it created huge liquidity problems, so the EU is looking at potential solutions should it happen again.
“One way would be a right for the consumer to seek a refund from the airline if it doesn’t refund the organiser. An alternative would be to require airlines to refund organisers within seven days.”
Griffiths added: “We saw organisers issue vouchers that weren’t necessarily financially protected in the early days of the pandemic. The EU is looking to regulate vouchers if it were to happen again.”
It is likewise considering the status of Foreign Office advice on travel, with Griffiths noting: “The EC is looking at whether to link refund rights to advice.”
However, the EC is considering a limit on consumer pre-payments similar to rules in Germany which cap deposits at a maximum 20% and require balances be taken only 30 days before departure.
Griffiths warned: “That could be problematic for organisers required to make payments to suppliers but limited as to when cash can be taken from customers.”
Hotelplan head of legal affairs Toni Boswell agreed, saying: “A limit on pre-payments would be a big thing for us. A lot of suppliers expect full payment upfront. Being only being able to take 20% as a deposit and full payment 30 days out would mean a huge liquidity challenge.”
The EC is looking to publish proposed amendments later this year.