After a couple years without confirmed updates to the Package Travel Regulations consultation, the government have finally launched a brand-new set of proposals.
The proposed consultation is set to last 12-weeks and is set to include proposed changes to domestic packages within the regulations.
The aim is to continue to provide important safeguarding for consumers, whilst taking the opportunity to reshape how the travel industry works.
Thus far, the proposed changes include:
- Changing domestic packages to require an element within the regulations,
- Improving the flexibility of insolvency protection provisions for non-flight packages,
- Reducing the number of ways linked travel arrangements can be provided to simplify their regulations,
- Increasing the flexibility travel businesses have in providing protection for insolvency, and
- Clarification of the rights of organisers to redress from suppliers when they are required to refund consumers.
The Department for Business and Trade said in a statement, “The government wants the regulations to give consumers appropriate protections when buying package holidays, support growth in the travel sector and encourage innovation, maintain trust in the travel sector [and] enable some flexibility for business in deciding how to secure consumer protections.
“There are some circumstances where the PTRs may no longer be fit for purpose and relevant and, in these cases, the balance between consumer protections and burdens on businesses may not be right.
“We are seeking views on ways to keep a high level of consumer protection but reduce the burdens on organisers.”
The minister for employment rights, competition and markets, Justin Madders, stated in a foreword, “The government’s intention is to retain key safeguards of consumer protection that underpin the PTRs while making the most of the opportunity to reshape the regime, so it supports growth in the sector and greater consumer choice.
“I particularly welcome input on proposals that aim to free up existing businesses to offer innovative new packages and encourage new businesses into the market.
“We will continue to work closely with DfT and the CAA to ensure a collaborative approach to any future policy development or changes.”
Following this consultation, industry professionals will have the chance to respond. Until the 30th of June 2025, contributors will be able to respond to the consultation proposals, after which point the government will make the final decision on how to reform the Package Travel Regulations.
Previously in the Package Travel Regulations consultation…
If you have not been keeping up to date with the PTR consultations over the years (it’s been a long one!), this may all need a little context. So, as we dive into this new launch, here is a refresher on what previous consultations covered.
December 2021
In the summer of 2021, the BEIS held a series of workshops to collect ideas on where the Package Travel Regulations most needed clarifications and adjustments.
According to David Marshall of the BEIS, a few specific areas were highlighted for review. This comprised of refund credit notes (RCNs), alignment with consumer law changes, linked travel arrangements, package definitions, compliance flexibility, and the information requirements for travel businesses.
This first consultation and the specific changes proposed in 2021 were predominantly impacted by the effects of Covid on the industry.
June 2023
Following the initial introduction of the consultation in 2021, there wasn’t much reported until further calls for action on the issue came in 2023.
At this time, the Chartered Trading Standards Institute (CTSI) were the biggest voice calling for further change. This call came following a review of consumers’ understanding of the Package Travel Regulations (I’m sure you can guess where this is going…).
It was found that most consumers aren’t aware of the PTRs, let alone understanding of the difference between a package and a linked travel arrangement.
The changes they called for were to simplify the language used in the PTR and the information required from businesses, introduce a reform of the PTRs, implement punishment for businesses providing misleading information, the addition of a warning system surrounding holidays with limited protection.
This was followed later the same month by demands for the linked travel arrangements to be removed entirely from the PTRs.
Changes were also requested from the CMA, which have seen further progress. Laws on misleading information and marketing from travel businesses have since been tightened considerably.
If you’d like to discuss trust accounts further, please get in contact with one of Protected Trust Services’ (PTS) lovely staff members by calling 0207 190 9988. Or, you can visit our member support and travel trust account pages to learn more about how we protect you.