Package Travel Regulations and How They Apply to You

In the dynamic landscape of the travel industry, understanding and adhering to the Package Travel Regulations is paramount for the success and credibility of your business. This isn’t just because it’s illegal to do otherwise (though that is an important part).

While most in the industry understand the importance of these regulations, understanding the contents of the regulations is another story. However, as an expert looking after travellers on a daily basis, it is necessary that you understand how they are protected and where your travel business fits into that. 

We’re not saying you have to read the entire 2018 legislation, don’t worry (it’s a very dry read, trust me). A basic understanding of what will and won’t affect you is necessary though. So let’s break down what the Package Travel Regulations are and how they apply to your travel business.

What Are Package Travel Regulations and Linked Travel Arrangements? 

The 2018 Package Travel Regulations and Linked Travel Arrangements are laws designed to protect travellers who purchase holiday packages. These regulations were put in place to ensure that travellers receive clear information, financial protection, and either refunds, changes, or reimbursements in case something goes wrong due to either unpredictable circumstances or failure of the travel business. 

It’s important to keep in mind that your travel business is not the only one these apply to. Compliance with these regulations isn’t just about your business and your traveller. These rules apply to the suppliers that provide elements of the package, the tour operator that creates the package (if that isn’t you), and the CAA if there is failure with a package that includes a flight.

As you may have already guessed, the Package Travel Regulations apply to the sale of package holidays and linked travel arrangements.

So, what is a package holiday under these terms?

Definition of a Package: According to the regulations, a package is defined as a combination of at least two different types of travel services for the purpose of the same trip or holiday, as long as these services are:

1. Combined by a trader and sold or offered for sale at an inclusive price; and
2. Advertised or sold under the term “package” or similar. 

Essentially, as long as there is accommodation and an activity and transport, or some combination of these, and they are being sold as a package, not individually, then these laws apply.

There are extra clauses that might apply, for example, if the package does not cover over 24 hours, it can only be covered as a package if it includes overnight stay. These small changes may never apply to your business, but it’s worth being aware of them.

The difference with a linked travel arrangement, is that the services are sold separately. So, if the holiday includes a flight and a hotel and these are sold as a “package”, under one listing, and taken as one cost, this is a package. If, however, the flight and the hotel are sold as separate items, with two separate charges, this is most likely a linked travel arrangement. This simply means that most of the regulations protecting the consumer will no longer apply.

How Do They Apply to Your Business? 

Understanding how the Package Travel Regulations apply to your business is essential for compliance and traveller confidence. For example, it is vital to keep in mind that the Package Travel Regulations will always take president over your own terms and conditions. This means that if you put something in your terms and conditions that conflicts with the regulations, that term will no longer be applicable.  

It is for this reason that we at PTS ensure all our members are completely Package Travel Regulations compliant and provide expert advice to help them function within the regulations.  

Here’s how the regulations may affect different types of travel businesses:

Tour Operators

If you operate as a tour operator and create and sell package holidays directly to consumers, you are responsible for complying with all aspects of the regulations, including providing financial protection and ensuring the proper performance of travel services.

Travel Agents

Travel agents that sell pre-arranged packages created by other businesses must ensure that their suppliers comply with the regulations. While travel agents may not have the same level of responsibility as tour operators, they must still provide accurate information to customers and ensure their suppliers offer financial protection.

The most applicable sections of the Package Travel Regulations for a travel agent specifically will be concerning information. You need to keep your travellers reasonably up to date on any relevant information, you must provide the right documentation in a timely manner, and you must make all of this accessible and clear to read.

Online Travel Agents (OTAs)

OTAs that facilitate the sale of package holidays must ensure that the packages they offer comply with the regulations. This includes verifying that the packages are properly advertised, priced, and protected, as well as providing customers with clear information about their rights.

These things apply to any agent that sells online, of course, but if you are exclusively selling online it is particularly important that you provide clear and concise information for the travellers.

What Package Travel Regulations Do Not Cover

There is a lot of stuff that these regulations just don’t apply to. Some of these are a little more dependent on details, but it’s important to keep in mind what changes to a holiday will potentially stop your customer from being protected.

Most distinctly, these regulations don’t apply to individual elements. If you are only selling hotel stays, or flights, or specific activities without anything else included, this will not be covered by these regulations.

Within packages however, these are some exclusions to keep in mind:

• Packages under 24 hours in duration that don’t include over-night stay
• Business trips
• Non-profit trips (for example, scouts, friends groups and some sports groups)

The Package Travel Regulations do apply to linked travel arrangements, as we mentioned earlier, but the amount of protection for these holidays is significantly dimished. This means that your customers will most likely feel safer booking a package because they’ll know their money is protected if something happens.

Package Travel Regulations play a crucial role in safeguarding the rights and interests of consumers in the UK travel industry. As a travel business owner, it is imperative to familiarise yourself with these regulations and ensure compliance to protect both your customers and your business. By understanding the key provisions and how they apply to your business, you can navigate the regulatory landscape with confidence and integrity. 

So, if you would like to learn about how your consumers’ monies are protected with Protected Trust Services (PTS) and how we support excellent travel businesses, check out our pages. Or you can contact the lovely PTS team by calling 0207 190 9988 or emailing us at ask@protectedtrustservices.com.