Proposals to reform PTD alarm lawyers in Europe

Travel lawyers in Europe have expressed alarm at the extent of revisions proposed to the EU Package Travel Directive (PTD) which appears set to diverge significantly from UK package rules if EC and European Parliamentary proposals remain unchanged.

Klara Dvorakova, managing partner at Prague law firm Holubova, noted the EC’s intention to “change the definition of a package to make it clearer, cut the definition of Linked Travel Arrangements [LTAs], cap pre-payments, broaden the cancellation rights of consumers, and propose suppliers refund organisers within seven days”.

Speaking at an International Travel Law Network (ITLN) conference in Prague last month, Dvorakova reported: “The proposals [from late 2023] went to the EU Council, representing member states, and its view much more reflects what the market wants.” 

But she explained the rapporteur of the European Parliament, Alex Agius Saliba, then went “further than the Commission, proposing a 25% cap on pre-payments combined with escrow, and cancellation rights in the event of extraordinary circumstances between a traveller’s home and the start of the package”.

Dvorakova is chair of the International Forum of Travel & Tourism Advocates (IFTTA) working group on PTD reform which is monitoring the reform process and she noted there have been “more than 400 amendments” to Saliba’s proposals which have yet to be agreed by the Parliament, saying: “There is a fight on every topic.”

The proposals must be finalised by trilogue discussions between the EC, Council and Parliament. 

Klaus Siebert, partner at Dusseldorf law firm Engles-Siebert, warned: “We’ll have increased organiser culpability, much higher rates of cancellation repayments and increased financial strain.”

He argued: “’Extraordinary circumstances’ has always had to be at the place of destination. Broadening it to the place of departure and even to the consumer’s place of residence is not balanced. It puts a hell of a risk on the financial structure of tour operators.”

Siebert suggested: “If we push only the level of consumer protection, package travel will probably be dead in two years.”

Michael Wukoschitz, partner at law firm Kornfeld Wukoschitz Cernochova in Vienna, agreed the proposal to extend ‘extraordinary circumstances’ to the traveller’s place of residence “is an unfair shift of responsibility to the organiser”.

He said some travellers cancelled trips during flooding in Austria and Vienna last September, saying they “were unable to get from home to the airport”. But a court found it was the place of departure which mattered, ruling: “If the airport is not affected, it’s not extraordinary circumstances.”