European trade body welcomes package reform amends

The European Travel Agents’ and Tour Operators’ Association (Ectaa) welcomed a revision of proposed changes to the EU Package Travel Directive (PTD) by a European Parliament committee recently but warned: “Key concerns remain.”

Ectaa hailed “several simplifications and improvements”, offering “warm support” for deletion of a proposal for “one-size-fits-all restrictions on prepayments by consumers” which had alarmed the trade.

But it noted the revised proposal “allows member states to set national limitations, potentially leading to a patchwork of rules across the EU”.

It called for “a harmonised framework” and warned: “Requiring insolvency protection to reflect the highest level of prepayments – even in off-peak periods – would impose unnecessary burdens [which] translate into higher prices for consumers.”

The association, of which Abta remains an affiliate, welcomed deletion of a proposal to extend consumer rights to cancel a package to include ‘unavoidable and extraordinary’ circumstances in their “place of residence”.

Ectaa also welcomed the removal of Linked Travel Arrangements from the revised directive. However, it warned new rules proposed for ‘packages’ booked online not at once but in stages within 24 hours “may replicate the same legal uncertainties and practical challenges, blurring the distinction between a package and standalone travel service”.

The proposals must still be put to a Parliamentary vote and go through ‘trilogue’ negotiations between the Commission, the EU Council of Ministers and MEPs.

Separately, Ectaa warned a vote by the European Parliament’s Transport Committee in favour of adding a consumer right to the refund of ‘intermediation fees’ when due a refund for a cancelled flight “puts travel agents at risk”.

The EC has proposed extending existing air passenger rights under EU Regulation 261 to clarify the refunds process when tickets are sold through intermediaries and add new rights for ‘multimodal’ journeys involving more than one form of transport.

Ectaa noted the Transport Committee had “gone beyond the EC proposals”, warning a consumer right to refund of intermediation fees “threatens the viability of travel agents”. It said agents “get no or minimal commissions from air and rail operators [and] must charge an intermediation fee to sustain their services”.

However, Brussels-based Airlines for Europe welcomed the proposal.