Government warned of risk of new Package Travel Directive
A Government advisory body is warning that British holidaymakers could have less financial protection if the UK adopts the proposed new European Package Travel Directive.
In its annual report, the Air Travel Insolvency Protection Advisory Committee makes it clear that it is concerned the new PTD waters down protection currently provided by the ATOL scheme.
Its main concern is that holidaymakers will be protected by the country where their holiday company is based, rather than by the country where they bought their trip.
So if a British holidaymaker buys a package from a tour operator based in Malaga, Spain will be responsible for protecting their holiday.
The committee, established by the Government to provide advice on financial protection arrangements for air passengers, believes this measure will be confusing for consumers, as well as placing a significant administrative burden on protection scheme providers.
"It will also require strict enforcement from the European Commission to ensure protection is being consistently applied across different European states, while there are also concerns about how to ensure compliance from travel companies based outside of Europe," it said.
During the last year, ATIPAC has raised these issues with the Department for Business, Innovation and Skills, the Department for Transport and the European Parliament’s Committee on Internal Market and Consumer Protection.
It has now set up a sub-committee to continue to investigate the measures that could affect UK consumers.
Chair John Cox said:"We are pleased to see the long-awaited PTD is progressing, but are very concerned about how some its measures could impact UK consumers – particularly making where a business is located determine which state is responsible for protecting holidaymakers.
"UK consumers currently receive a very effective level of protection through the existing ATOL scheme and however the Government decides to implement the new PTD, that level of protection must not be undermined.
"This is now a critical moment for the future of the financial protection arrangements. As an independent committee with a wealth of experience of consumer and travel industry issues, we stand ready to assist the Government to ensure that UK holidaymakers continue to enjoy financial protection that is clear, easy to access and appropriately funded."
As well as investigating the potential impacts of the new PTD, the past year also saw the committee help shape the CAA’s ‘Pack Peace of Mind’ consumer campaign.
"This campaign has helped improve consumer understanding of the ATOL scheme and the committee has made it clear that the momentum the campaign has achieved should not be lost through the implementation of the PTD," it said.
In compiling its report, ATIPAC took contributions from six new members including On the Beach CEO Simon Cooper and easyJet holidays general manager Mandy Round.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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