Government issues new package holiday guidance
New guidance for business on the definition of a ‘package’ holiday has been published.
The guidance is designed to provide greater certainty for the travel industry on what is a complex area, according to the government.
Package holidays offer safeguards not available with other types of travel. These benefits mean different legal obligations for the businesses selling them, the Department for Business said.
Consumer affairs minister Gareth Thomas said: “The travel industry and holidaymakers both need clarity about what is a package holiday so that industry understands what is expected of it and consumers understand what they are buying.”
Companies need to establish whether the services they are offering are considered to be package holidays, or whether they are a number of separate travel services.
Sometimes this is straightforward, but in some cases it is much harder to decide.
The Guidance sets out a range of examples and factors, identified by the Courts, which need to be considered, including advertising and customers’ perceptions.
ABTA’s head of legal Simon Bunce said: “This is a very good assessment of the High Court Judgement decision on what is a package.
“However, we are still urging companies to seek specific advice about their own holiday products as this remains a complex area of law in need in reform by the European Commission.”
Noel Josephides (Sunvil Holidays), of the Association of Independent Tour Operators, said: “The updated Guidance Notes, detailing what constitutes a package and thus requires financial protection, will not only dispel confusion and help travel agents and tour operators to adapt to the new order, but will also ensure that the travelling public continues to enjoy financial protection for holiday purchases – which can, after all, be the major family purchase of the entire year. “
Andrew Cooper, director general of the Federation of Tour Operators, said: “FTO welcomes this attempt to provide clarity in an area in which there has been significant confusion and uncertainty amongst the trade and the general public as a result of the rapidly changing marketplace.”
by Phil Davies
Phil Davies
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