OTAs urge government to overhaul ‘outdated’ travel regulations

The government is being urged by a group of OTAs to act to change “outdated” regulations, promote fair competition and remove barriers to innovation in the sector. 

 

The demands are contained in a white paper produced by the coalition of OTAs, which claims they have helped more than 36 million people search for or book travel over the past two years and consumers could spend £17.5 billion with them on future trips.

 

Online Travel UK (OTUK), comprising of 11 firms including On the Beach, loveholidays and Expedia, wants to see three changes:

 

• Modernise travel and holiday safeguards, increase consumer choice - update Atol and Package Travel Regulations (PTRs) and eliminate Linked Travel Arrangements (LTAs) to reflect modern booking behaviours, remove unnecessary complexity and ensure transparency in pricing and ancillary fees. 

 

•     Promote fair digital markets and proportionate consumer rules - ensure dominant online platforms like Google treat all travel providers fairly in search results, advertising and AI-driven recommendations. 

 

•     Deliver a world-leading travel tech ecosystem - invest in digital skills, innovation incentives and co-ordinated policymaking to make the UK a hub for travel technology.

 

OTUK said “Online travel companies make it easier and more affordable for millions of UK families to travel. 

 

"But without modernised rules and a level, competitive playing field, these benefits risk being eroded, leading to reduced choice, higher prices and outdated protections. 

 

"We urge government and regulators to act and look forward to working together to secure a thriving, innovative travel sector that delivers for consumers and the economy.”

 

Consumer research for the paper outlines choice, value and protection as key drivers:

 

·       89% want to compare multiple options in one place.

·       37% cite value for money as their main reason for booking online.

·       91% say financial protection is important.

·       42% expect AI to grow in importance for their travel planning.

·       70% want a single app to search, plan and book.

 

The white paper outlines how OTAs not only connect consumers to travel products and services worldwide, but also invest in technology, jobs and digital skills, which supports UK-based travel tech businesses to compete globally, driving growth.

 

It added: “The UK can be a world leader in travel-tech innovation. But only if government, regulators and industry work together now to protect consumer choice, ensure fair competition and support innovation. 

 

“The actions outlined in our paper are targeted, practical and pro-consumer and we will continue in earnest to engage with policymakers on the detail.”