MEPs vote in favour of package travel reforms

Members of the European Parliament have voted overwhelming in favour of proposed reforms to the Package Travel Directive that provide the traveller with more protection than originally outlined by the European Commission.

The yes vote came yesterday despite a call from the European Tour Operators’ Association (ETOA) for the Package Travel Directive to be ditched altogether. It claimed the PTD and the proposed reforms were "no longer fit for purpose", "unenforceable" and "certain to generate much litigation".

"ETOA believes that the essential requirement is a scheme, recognisable EU-wide, that offers consumers a choice of financial protection in respect of pre-payment and cost of repatriation, and simplifies methods of redress," said ETOA’s head of policy and strategy Tim Fairhurst.

" The current proposal will not provide an EU-wide scheme. It will perpetuate national and regional market silos. Meanwhile, businesses based outside the EU will benefit from a marked competitive advantage."

However, MEPs voted 35 to 2 in favour of the draft legislation, which the European Parliament Internal Market Committee said should ensure that:

• travellers are repatriated if their travel organiser goes bust while they are abroad on holiday. If possible, travellers should have the option of continuing their trip before travelling home;
• prices are only raised after the sales contract has been concluded if fuel prices, taxes or airport fees go up. If the price increases by more than 8% (the Commission proposed 10%) travellers should be able to choose to get their money back, including payments for ancillary services such as travel insurance or activities on the trip, or be offered an equivalent package. Any price reduction of more than 3% should be passed on to the customer;
• organisers should not be able to change flight times significantly once the sale has been concluded;
• travellers in difficulty can get help during their holiday even if the travel organiser is not at fault. Assistance should include information on health services, consular assistance or making alternative travel arrangements;
• if "unavoidable" and "unforeseeable" circumstances make it impossible for the traveller to return home on time, the organiser has to arrange accommodation for him or her at a similar level to the accommodation originally booked or alternatively pay for a stay of five nights up to €125 per night where the organiser is unable or unwilling to make a booking (the Commission proposal says three nights at no more than €100). 

The new directive should cover all package travel consisting of a combination of different elements, such as hotels, flights or car hire and linked travel arrangements (currently known as "assisted travel arrangements"), MEPs said.

Packages and linked travel arrangements put together by non-profit-making organisations such as schools, football clubs or charities won’t be covered.

Under the proposed revisions to the PTD, organisers must be responsible for the performance of the travel services included in the contract, unless national legislation expressly provides for the retailer to be held liable.

The report is scheduled for a plenary vote in March when Parliament will conclude the first reading. Negotiations with member states will begin after the elections in May.