travel package regulations

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The European Package Travel Directive

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In 2018, the new European Package Travel Directive came into force. This directive protects European travellers’ rights when booking package holidays. It applies to both European tour operators and foreign parties selling travel products directly to European travellers. As a travel organiser who is active on the European market, you should inform yourself about the Package Travel Directive and take the necessary precautions.

Contents of this page

• What is the Package Travel Directive?
• What’s new in the 2018 Package Travel Directive?
• Who does the Package Travel Directive affect and why is it important?
• What are the rights and obligations regarding a linked travel arrangement?
• What options do you have as a travel organiser that sells directly on the European market?
• What options do you have as a travel supplier to European organisers?
• What should you do in response to the Package Travel Directive?

1. What is the Package Travel Directive?

The Package Travel Directive (2015/2302/EU) protects European travellers’ rights when booking package holidays, for example in terms of cancellation, liability, repatriation and refunds. It applies to both European and foreign traders selling travel packages to European travellers, be it directly or via a retailer.

This means that even if you don’t sell your travel products directly to European travellers, you should be familiar with the Package Travel Directive. European tour operators may translate their requirements into demands on you, especially as the Directive makes them responsible for all services in the packages they sell.

New ways of travelling require new rules

In 1990, tourism was one of the first sectors to introduce specific Europe-wide consumer protection legislation through the first Package Travel Directive. Back then, this legislation covered about 98% of European travellers’ holidays. Nowadays, this has become less than 50% through for example the rise of online booking. The definition of what does and doesn’t constitute a package clearly required an update. Because of this, a new Directive was needed.

On July 1st 2018, the new Package Travel Directive came into effect. This update strives to give the consumer (or ‘traveller’) clear information, as well as create a level playing field and a fair internal market. It includes both leisure and business travellers. The details per country vary, although several countries such as the Netherlands have fairly literally translated the European Directive into national legislation. Focusing on specific countries doesn’t make sense, as differences aren’t that significant.

Because this Directive is new and the exact implementation varies between countries, its concrete implications are not yet certain. Future legal challenges may be needed to interpret the Directive and create clarity. This study presents a general overview, along with some preliminary interpretations and predictions of several industry experts.

2. What’s new in the 2018 Package Travel Directive?

The previous Package Travel Directive wasn’t harmonised across Europe, so the exact differences between the old and new legislation vary per country. The most important change is the extended definition of ‘package travel’. Almost anything is package travel now, if it combines at least two of the following types of travel services:

• transport of passengers
• accommodation
• car and motor rental
• other travel services, like excursions, guided tours, or museum visits

Some services that are part of another travel service should not be considered as travel services in their own right. Examples are short distance transport as part of a guided tour, or access to on-site facilities such as a hotel swimming pool.

Six types of package travel

There are now six types of package travel. The first situation is identical to the old Directive:

• a combination of two or more travel services, within one contract by one organiser Example: one organiser offers a combination of accommodation, transport and excursions within one contract. It doesn’t matter whether the package is pre-arranged or combined at the request of the traveller.

There are five new situations that form a package even if there are two or more separate contracts with individual travel service providers , if:

• multiple travel services are bought at a single point of sale and selected before the traveller agrees to pay Example: on a travel website, a traveller has a hotel room in their shopping basket and then adds excursions. The traveller then books these services together.  
• a combination of travel services is offered, sold or charged at an inclusive or total price
• a combination of travel services is advertised or sold under the term “package” (or similar)
• a traveller can choose from a pre-selection of travel services after concluding the contract Example: a gift certificate  
• after selling a travel service, the first trader links the traveller to a second trader and transmits their name, e-mail and payment details . The traveller must book the second travel service within 24 hours of confirmation of the first. This is an online click-through package. Example: an airline sells a flight ticket. After the booking is made, the airline links the traveller and transmits their details to a hotel booking website where the traveller makes this second booking within 24 hours.

There is no package if the combination covers a period of less than 24 hours and does not include an overnight accommodation. For ‘other travel services’ such as tours and activities to form a package, they must make up at least 25% of the package value or be an essential feature of the package.

Linked travel arrangements

The Package Travel Directive also introduces a new concept called a ‘linked travel arrangement’. These are business models which strongly compete with ‘packages’, but deviate from the definition.

Like a package, a linked travel arrangement requires at least two different types of travel service purchased for the purpose of the same trip or holiday. In case of a linked travel arrangement, they will result in at least two separate contracts with different travel service providers .

There are two types of linked travel arrangement:

• during a single visit or contact with their point of sale, a trader facilitates the separate selection and separate payment of each travel service. Example: an airline sells a flight ticket. After the conclusion of this contract, the website of the airline presents an option to select a hotel, noting that the traveller will have a contract for this service directly with that travel service provider. The traveller then concludes the contract on the website of the airline.

The difference between this type of linked travel arrangement and a ‘Type 2 – package’ is that the additional travel service is chosen after the booking of the first travel service (which essentially requires booking multiple times), whereas with a Type 2 – package the travel services are first chosen and then booked (which requires booking only one time).

  2. a trader facilitates (in a targeted manner) the booking of at least one additional travel service from a second trader, where the second contract is concluded within 24 hours after the confirmation of the first. Example: an airline sells a flight ticket. After the booking is made, the airline links the traveller (without transmitting their name, e-mail and payment details) to a hotel booking website where the traveller makes this second booking within 24 hours. 

Organisers and retailers

Another key change, especially in the Netherlands, is the shifted focus from travel agents and tour operators to ‘organisers’ and ‘retailers’. Organisers are responsible (and in case of malperformance, liable) for the packages they combine, regardless of their official business model. Retailers are traders that sell the package of the organiser, without combining it with other travel services.

Whether you are acting as an organiser for a given package depends on your involvement in the creation of the package, and not on how you describe your business. When in doubt, the legitimate expectation of the traveller might be of influence: who do they think they are concluding their package travel agreement with? This doubt should be avoided by clearly indicating who the organiser is, before concluding the agreement.

• Study the Package Travel Directive and its new rules and definitions. The practical guide to package travel and linked travel arrangements and summary of the Package Travel Directive provide an overview.
• For more information, the European Union’s factsheet on stronger protection for package holidays explains how the Directive works in practice. It also illustrates the differences between the old and new version.
• See the national transposition measures for an indication of the legislation per European source country.
• Keep track of developments, as the outcomes of legal challenges may provide more clarity on the exact effects of the new Directive.
• Traders often have multiple types of offers. Some offers might be a package and other offers might not. Assess per type of offer whether there is a package and inform the traveller correspondingly.

3. Who does the Package Travel Directive affect and why is it important?

Who does it apply to.

The scope of the Package Travel Directive is not limited to European organisers or travellers residing within Europe. It also applies to you if you directly sell to European travellers.

The Directive handles specific definitions for the parties involved in tourism:

• ‘traders’ are persons acting in relation to packages and linked travel arrangements for commercial purposes (and other purposes relating to their trade)
• ‘organisers’ are traders who combine and sell/offer packages directly or through another trader
• ‘retailers’ are traders other than organisers, who sell/offer packages combined by an organiser
• ‘travellers’ are persons seeking to conclude a contract or entitled to travel on the basis of a contract concluded (including business travellers, unless they are acting on the basis of a general agreement)

The effects of these new definitions on Destination Management Companies (DMCs) and local suppliers are not yet known. A lot more travel arrangements are included in the new definition of packages.

What does it affect?

Some of the most important issues affected by the new Package Travel Directive are:

To protect European travellers, organisers are responsible for the travel packages they sell. This means they are (financially) liable in case of malperformance and need to be insured. With the extended definition of package travel, organisers have become responsible for more types of travel arrangements than before. This affects you both in the role of organiser and of supplier, as European partners you supply to may require you to have liability insurance in place to protect their interests.

Similarly, European travellers must also be protected against insolvency. This means that travellers must be refunded in case of bankruptcy. To ensure this, organisers may have to insure for insolvency protection. Again, this also affects you in the role of supplier, as European partners you supply to may require you to have liability insurance in place to protect their interests.

This study further explores your options to comply with these requirements in the coming sections.

When does it apply?

Sales through a european organiser or retailer.

The Package Travel Directive creates different dynamics, depending on the size and power of the European organiser and of the local DMC or supplier. If both the organiser and the supplier are strong players, they are likely to make clear arrangements to divide the risks and capitalise the risk division. In an unequal partnership, the risks tend to be forced onto the weaker party. If both parties are relatively small-scale businesses, they usually don’t make extensive contractual arrangements.

Figure 1: The effect of size and power of organisers and suppliers

Source: Kompas Juristen

European retailers of packages combined by non-European organisers must have insolvency protection, unless they can provide evidence that the organiser has sufficient protection. European countries may also require retailers to contract insolvency protection.

Retailers of non-European organisers are also responsible for the proper performance of the package and are liable in case of malperformance, unless they can prove the organiser complies with those obligations. How this proof is to be given is unclear, but it could include a statement from the non-European organiser. Retailers might still be liable if they are operating in a country where national law makes both organisers and retailers responsible. How retailers will manage these risks is unclear.

• Make sure to have clear arrangements in place and be aware of the contents of these agreements. What are you liable for?
• It will be an advantage for European retailers to sell your packages if you provide a statement that you are responsible for the performance of the package and that you comply with all local conditions, regulations and legislation.
• It will be an advantage for European retailers to sell your packages if you offer sufficient insurance for insolvency to the traveller.

Direct online sales on the European market

The Directive also applies to direct online sales on the European outbound tourism market. In these cases, you (as the organiser) are responsible for the package.

In-destination sales through representatives of European organisers

Another option is to sell a secondary tourism product on location, on the recommendation of a local representative of the European organiser (such as a tour guide). If this representative merely mediates between the traveller and a local supplier, the organiser will not become party to the contract, nor will this travel service become part of the travel package. The organiser will generally not be liable for faults of the local supplier.

However, if the representative doesn’t (make it clear they) merely act as a mediator, then it is likely the organiser is responsible for the actions of the local supplier. This isn’t specifically related to the Package Travel Directive, but due to general contract law rules on responsibility for subcontractors. There might be exceptions depending on the applicable law.

Choice of law

In a Package Travel Contract, a clause could determine the choice of law to govern the contract. There generally is free choice of law, meaning you could potentially choose to comply with your national legislation rather than the Package Travel Directive.

However although there is no legal precedent as of yet (October 2018), provisions from the Directive might constitute so-called ‘overriding mandatory rules’ due to their imperative nature. This means that if your activity is directed to a European country, the obligations stemming from the Directive most likely apply even if you have chosen your national law to govern the contract.

If you, as a non-European organiser, sell packages (or linked travel arrangements) in Europe, the provision in the Directive to provide insolvency protection for travellers certainly applies. Regardless of the choice of law.

According to public law, if you direct activities to Europe you must provide insolvency protection. European countries can require organisers to provide travellers with a certificate documenting a direct entitlement against the provider of the insolvency protection. For example Germany requires this type of certification. In addition, European countries may also require retailers to contract insolvency protection.

• If you are making an effort to attract European customers, you can expect that you are directing your activities to Europe. See the summary of this European court judgment for more detailed criteria.

What are the rights and obligations regarding package travel agreements?

There are many obligations for you and rights for the traveller when you are offering a package. These include information requirements, the use of a standard information form , contractual rights of the traveller, responsibility for performance and protection when you go bankrupt.

• For more information, watch the UK European Consumer Centre’s video on travellers’ rights .

Responsibility for performance and liability

As an organiser, you are responsible for the performance of your package. If the package is not performed as contracted, you must remedy this unless that is impossible or brings disproportionate costs.

In case of malperformance, you are (financially) liable. To protect your business, you may need to contract liability insurance. Similarly, if you are a supplier to a European organiser, this European partner may require you to have liability insurance in place so they can forward potential claims to you.

Insolvency protection

If you sell (or offer for sale) packages or linked travel arrangements in Europe, you must provide insolvency protection. This should contain the refund of all payments made by travellers insofar as the travel services are not performed due to your insolvency.

If the transport of passengers is included in the package, the protection should also provide for the travellers' repatriation. Continuation of the package may be offered. European countries can require you to provide travellers with a certificate, documenting a direct entitlement against the provider of the insolvency protection. For example Germany requires this type of certification.

There are various types of insolvency protection. Some of the options are a travel guarantee fund, a bank guarantee, insurance, a trust, an escrow construction or combinations of these measures. These service providers often require you to have an establishment in a European country.

New initiatives are being developed that may offer you alternative options to obtain insolvency protection. For example, Dutch commercial firm STO Garant now offers a guarantee without the requirement of a European establishment, provided either the trader or the traveller is based in the Netherlands. This type of arrangement could also be made available in other countries in the future.

• If the package does not include transport, you can also fulfil the obligation to provide travellers protection against your insolvency by letting them pay after the performance of the package. Of course this poses a risk, which you have to weigh against the advantage.

4. What are the rights and obligations regarding a linked travel arrangement?

When a combination constitutes a linked travel arrangement, you have to provide insolvency protection for the payment you receive. However, you are not responsible for the whole package and the rights and obligations for a package travel agreement do not apply.

You must inform travellers via a standard information form ( Annex II ) that the combination constitutes a linked travel arrangement and that they do not have the same rights as under a package travel agreement. If you fail to do so, the Directive prescribes that most rights will apply. This means you are not only obligated to provide insolvency protection for payments received, but are also responsible for the proper performance of all travel services and liable for malperformance.

5. What options do you have as a travel organiser that sells directly on the European market?

According to CBI, tourism SMEs  (small and medium-sized enterprises) in developing countries are doing more and more direct business on the European market, up to 60%. If you decide to trade directly with European travellers, you are responsible for the package travel products you sell them. So what options are there for direct trade within the new Directive?

Liability and insolvency insurance within your own country

Although in many developing countries the appropriate insurance isn’t available, some companies do offer you coverage. Local insurance companies often use an international name, but that doesn’t mean they provide the same standard of services as the international company. Obtaining this type of insurance could be sufficient to comply with European requirements, but how much the insurance really covers in practice may be unclear.

• Determine whether you can obtain insurance from a company within your country.
• Contact your national travel association (and become a member if you aren’t yet) and ask what options they know of and/or would recommend.

Liability insurance in another country

If liability insurance isn’t available within your country, you may be able to contract insurance abroad. Insurance companies from for example Hong Kong, China or Australia often accept clients from other countries as well. Again, whether these policies cover what you need is uncertain, but they do allow you to meet the European requirements.

• If you can’t contract the appropriate insurance within your country, study your options with foreign insurance companies. For example via the Insurance Council of Australia .
• In this case too, contact your national travel association for advice and/or recommendations.

Establishing a European entity

For some suppliers from developing countries, it can be a good option to establish a European entity. This is a division of your company based in a European country. Through your European entity, you can arrange corporate liability/insolvency insurance in Europe. It may also allow you to benefit from other facilities in the European country in question, such as a national travel guarantee fund (like the Dutch SGR or Danish Rejsegarantifonden ) or trade association (like the British ABTA or German DRV ).

This is a good option, but doesn’t work for everyone. Establishing a European entity involves considerable costs, which shouldn’t outweigh your potential gains. In addition, you need a European representative on your team who is based in the European country and speaks the local language. Otherwise, this strategy isn’t particularly feasible for you.

• If you have a suitable representative on your team or in your network, study the options for establishing a European entity in their country. In some countries, membership of the national travel guarantee fund may be mandatory.
• For more information on European travel guarantee funds, see the ECTAA-presentation A Travel Guarantee Fund: how does it work? using the Belgian GFG as an example.

Additional measures

Regardless of how you have arranged your liability and insolvency insurance, you should require your travellers to have travel insurance in place. Although you continue to be liable for malperformance, you can avoid some claims because travellers generally turn to their travel insurance first.

In addition, you shouldn’t include flights from and to traveller’s home country in your package offer. If you do, you are responsible for various issues such as repatriation and accommodation in case of disruptions under the Package Travel Directive. By excluding these products you avoid these responsibilities, which in practise pose a high risk for organisers.

• Require your travellers to have travel insurance. For example by making them tick a box confirming they have travel insurance or enter their policy number in the booking process.
• Don’t offer flights from and to traveller’s home country.

6. What options do you have as a travel supplier to European organisers?

As European travellers become increasingly aware of the risk of disruptions, the new Directive may drive them towards professional travel agents and tour operators. This emphasises the importance of partnering with European players.

Although the Package Travel Directive makes European organisers responsible for the products they sell in a package, this won’t make them stop working with developing country suppliers. It does mean they have to make better agreements with their partners, and protect themselves in terms of conditions of purchase and insurance requirements.

• You are not obliged to accept the demands of the European organiser or retailer. Big companies tend to impose unfavourable purchase conditions upon you. Your negotiating position depends on what their alternatives are.

Liability and insolvency insurance

The new Directive makes it increasingly common for European organisers to demand that their suppliers have liability and insolvency insurance. For example, TUI already requires potential new suppliers to indicate the extent of their coverage. Some organisers take care of the liability and/or insolvency insurance of their developing country suppliers if this is unavailable their home market. For a (potentially considerable) fee, they can expand the coverage of their own insurance policy.

• If the required insurance isn’t available in your country, inquire with your (potential) European partners whether they can arrange this for you.

Flexibility

European organisers need their local suppliers to be more flexible under the new rules. Now that travellers have the right to demand a solution or be reimbursed if there are changes to their package, you must have the flexibility to provide solutions. European organisers favour those suppliers that are best able to adapt to unexpected changes. This creates a need for stricter protocols, clear communication and good solid agreements with your European organiser(s) and your suppliers.

• Create flexibility by negotiating favourable cancellation conditions in purchase contracts with your service providers, including a cancellation possibility in case of force majeure.

Online travel platforms

Travel platforms like Evaneos or kimkim might become an interesting option if you aren’t able to ensure compliance yourself. That is, if these platforms decide to monetise on this business opportunity and are successful in finding ways to tackle compliance issues. Suppliers from around the world can offer packages on these platforms, but until now they often work with only 1 local DMC per destination.

So far travel platforms try to deflect any legal responsibility, but with the introduction of the concept of ‘organisers’ they may need to step up. How exactly they will develop in terms of liability arrangements and the number of partners per destination is currently unclear.

7. What should you do in response to the Package Travel Directive?

To summarise, for now the most important tips are:

• Study the Package Travel Directive and stay up to date on new developments. Useful sources of information can be the official Package Travel Directive documentation , national and international travel trade associations, and travel trade platforms such as Skift , the International Forum of Travel and Tourism Advocates . You can also keep up with new updates of this study by subscribing to our CBI newsletter .
• Research your own business model to determine whether you are considered an organiser, retailer or supplier. This may vary per offer.
• Assess per type of offer if it constitutes a package, to determine if the Directive applies.
• Study what rights travellers have in the Package Travel Directive and the European Consumer Centre’s video on travellers’ rights .
• Protect yourself and your travellers by studying your options to contract liability and insolvency insurance and making the necessary arrangements. Inquire with, for example, your national travel association, your (potential) European buyers and with national and/or foreign insurance companies. You can also ask your fellow (local) travel suppliers what their arrangements are.
• Be flexible to appeal to European buyers, for example by negotiating favourable cancellation conditions in purchase contracts with your service providers.

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Package travel directive

About the directive.

The EU rules cover pre-arranged package holidays, but also self-customised packages, where the traveller chooses different elements from a single point of sale online or offline. Furthermore, these rules provide certain protection for linked travel arrangements, which is when for example the traveller books a flight on a website and is then invited to book a hotel on a different website.

Package Travel Directive

Factsheet - stronger EU protection for package holidays   

Review of the Directive

On 29 November 2023, following a review of the Directive , the Commission adopted a proposal to amend the Directive to make the protection of travellers more effective and to simplify and clarify certain aspects of the Directive. 

Find all the documents for the 2023 Adoption package for the Proposal to Amend the Package Travel Directive  

Report on the application

The Commission published a report on the application of the Package Travel Directive on 1 March 2021.

Report on the application of the Package Travel Directive

The report takes stock of the experience gained with the application of the Package Travel Directive since its entry into application in July 2018 . It presents preliminary results of the assessment of national measures transposing the Directive. It also assesses the rules in the context of the 2019 Thomas Cook bankruptcy and the challenges that have since emerged during the COVID-19 crisis.

Click-through Report

A first report on the provisions of the PTD was published on 21 June 2019. It was required by Article 26 (1) of the Directive and provides an early assessment of the provisions applying to online bookings made at different points of sale and the qualification of such bookings as packages, linked travel arrangements or stand-alone travel services.

A stakeholders’ expert group created in July 2018 to support the application of the PTD as well as a targeted consultation, where more than 200 replies were collected, form the basis of the report, as detailed in the Staff Working Document accompanying it.

Package Travel Directive Click-Through Report (COM/2019/270)

Click-Through Report ANNEX (SWD/2019/270)

Contents of the directive

• Clear information for travellers : Businesses must inform travellers whether they are offered a package or linked travel arrangement, and on their key rights through standardised information forms. They must provide clear information on the features and characteristics of the package, its price and any additional charges. 
• Money-back and repatriation in case of bankruptcy : Organisers of packages must take out insolvency protection. This guarantee covers refunds and repatriation in case organisers go bankrupt.  This guarantee applies also to linked travel arrangements. 
• Clear rules on liability : The organiser of the package, is liable if something goes wrong, no matter who performs the travel services. 
• Strong cancellation rights : With the new rules, travellers may cancel their package holiday for any reason by paying a reasonable fee. They may cancel their holiday, free of charge should their destination become dangerous for example because of war or natural disasters, or if the package price is raised over 8% of the original price.
• Accommodation if the return journey cannot be carried out : Where travellers cannot return from their package holidays, for instance in the case of natural disasters, travellers are granted accommodation for up to three nights if they cannot return from their holiday on time. Additional nights are covered in line with the relevant passenger rights regulations. 
• Assistance to travellers : The package organiser must also provide assistance to travellers in difficulty, in particular, by providing information on health services and consular assistance. 

The rules apply to combinations of at least two types of travel services (transport, accommodation, car rental or other services, for example guided tours) including:

• packages, such as  ready-made holidays from a tour operator as well as now also customised selection of components by the traveller bought from a single online or offline point of sale;
• linked travel arrangements, for instance, when  the traveller purchases travel services at one point of sale, but through separate booking processes, or, after having booked one travel service on one website, is invited to book another service on a different website, provided that the second booking is made within 24 hours. 

The new rules are applicable in all EU countries from 1 July 2018.

Texts of the national transposition measures for the Package Travel Directive (EU) 2015/2302, as provided by the Member States.

Revision of the Package Travel Directive

EU package travel rules protect travellers who have booked two or more travel services together – typically, a flight and a hotel room. Since the 1990s, the EU has been setting norms in this travel industry sector, to protect consumers and define obligations for package organisers. Since 2004, regulations specific to the mode of transport (such as air, rail or coach) for passenger rights have also gradually been adopted at EU level, creating a comprehensive, albeit not always coherent, framework for passenger rights. The current EU Package Travel Directive (Directive 2015/2302 – the PTD), which adapted the scope of traveller protection to market and technological developments, entered into application in July 2018. The directive has been under review since November 2023, after a limited but particularly testing period of application that saw the bankruptcy of travel agencies company Thomas Cook in 2019, and the COVID-19 pandemic immediately after. Evaluations conducted by the European Commission and the European Parliament, summarised in this briefing, show that the PTD has been partially effective in meeting its objectives (to ensure a high and uniform level of protection for travellers in the EU, and to support the proper functioning of the internal market) and the needs of consumers and traders. Ongoing reforms seek to make the PTD more resilient to large-scale disruptions by adding certain clarifications, on the definition of packages for example, and to increase the level of traveller protection with new rules on vouchers, faster refund deadlines, and a limit on prepayments.

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About this document

Publication type.

• JANSEN Talander Hugo

Package travel regulation

Etoa, package travel regulation and related protection frameworks.

Latest update(s):

• 25 April 2024 | Joint industry position about the European Commission’s proposed amendments to the Package Travel Directive.
• 30 November 2023 | On 29th November the European Commission approved proposals for reform of the Package Travel Directive. These include a proposal to limit prepayment at time of booking to 25% of the package price, unless providers face costs which justify an additional amount (e.g. obligation to pay for flights in full). The reform process now moves on to the co-legislators, Parliament and Council.
• 26 November 2023 | The UK government is reported by Travel Weekly to be considering all options, including a complete redraft, of its Package Travel Regulations. Members are encouraged to participate in the current consultation which is open until end of 13th December and available here .

Package Travel Directive (PTD): Background

ETOA is not a consumer-facing association, and we are not involved in bonding or other assurance mechanisms. Our main interests on this topic are industry’s insurance and compliance requirements, and the impact of prevailing or proposed regulation on value-adding within the tourism ecosystem and consumer choice.

European package travel regulation was introduced in the 1990 Package Travel Directive (PTD), primarily to protect consumers from tour operators (and/or airlines) going bust and leaving tourists stranded far from home, and to safeguard their advance payments. Its success in protecting the travelling public is questionable. Much of the growth in retail travel took place outside the scope of the PTD.

Its successor, PTD2 , was published in 2015 and came into force in July 2018 by domestic implementation by the EU28 (prior to the UK’s withdrawal from the EU). This reduced national variation, and included welcome modernisation: no more should brochures be reprinted if prices change, electronic updates will suffice; compliance in one EU state is sufficient to sell to consumers in another; the addition of an ancillary service may not necessarily constitute a package. In practice, it also suppresses innovation and causes market confusion. It introduced the concept of a ‘linked travel arrangement’ that can give rise to liability for any entity involved, and may therefore deter collaboration within the supply chain.

During the COVID-19 pandemic, the limitation of PTD2 became more apparent. Agent and operator liability to refund consumers became hard to manage due to near total loss of cash flow, and the agents and operators themselves were often unable to recover pre-payments made to airlines and other suppliers. A fragmented approach was adopted across Europe: some countries permitted vouchers in lieu of cash refunds. The financial safety nets proved inadequate; consumer confidence was damaged. Once business resumed, managing operator liability for proper performance when the business environment and border arrangements remained so uncertain was hard.

Since the pandemic, there has been further review of PTD2 following a Commission report on its implementation . A legislative proposal was expected late 2022 but is now expected late 2023. For update on schedule, click here . The most concerning proposal is to limit the pre-payment agents and operators selling packages can collect from consumers to 20% at booking, with the balance due no earlier than 28 days prior to departure. This would create a near unmanageable cashflow problem for most intermediaries, and is not necessary to secure client funds in the event of insolvency.

What you need to know

• PTD2 enables more cross-border selling (see note on ‘non-EU business’ below)
• ‘Linked Travel Arrangements’ create liability for third-party performance
• Not all travel service combinations give rise to a package

ETOA’s policy objectives

• Appropriate and fair allocation of risk within the distribution chain
• Increased business awareness of opportunity and risk under PTD2
• More value-adding with increased consumer choice across borders

What we are doing

• Participation in European Commission’s expert stakeholder group on package travel
• Consultation and expert webinars in collaboration with partners

Scope for further reform

Current status.

In November 2023, the European Commission approved proposals for reform. The process will now move on to the Parliament and Council for examination and debate. Given elections mid 2024, it is likely that a future Parliament will need to approve.

The new proposals are the result of a policy development since the Commission published a report on the application of the Package Travel Directive on 1 March 2021, which addressed PTD’s effectiveness following the collapse of Thomas Cook, and some of the problems caused by the COVID-19 pandemic. This report was a necessary first step prior to any changes to existing arrangements. The passenger rights directive also affects consumer rights. As for PTD, its application during the pandemic proved highly problematic for intermediaries who had made pre-payments for flights which they could not easily recover from airlines, and yet they were still obliged to refund consumers in full unless other arrangements were sanctioned by national governments.

Following the pandemic, there was strong consumer interest in packaged product and buying from agents, partly due to the desirability of support should circumstances change in destination, such as public-health related travel restrictions. Given the inadequacy of financial protection mechanisms, especially during 2020, and the uncertainty related to cancellation rights, industry continues to push for short-term direction from the EC to help restore both business and consumer confidence. Medium-long term, the framework needs further reform which address both business and consumer needs, and makes an appropriate allocation of risk between public and private sectors.

To succeed, European tourism needs a regulatory framework that encourages innovation and value-adding. As for tax, the higher the compliance load, the more the value-adding will happen elsewhere. While insolvency protection is desirable, what sector-specific arrangements are necessary given the availability of credit card payment protection and insurance products tailored to suit consumer’s risk appetite?  There has been extensive development of general consumer protection since PTD was first introduced. The case for special protection for packages that do not include a significant travel component is weak. ETOA, with its partners, will continue to recommend further reform.

Non-EU business

B2C sales of packaged product cross-border are thought to be minimal: Europeans are conditioned to look for accreditation and proof of compliance from brands they recognise. But sophisticated consumers may be prepared to buy if they find the reassurance they seek.

The  withdrawal agreement  between the EU and the UK does not mention tourism (other than Art.11 which covers areas of north-south collaboration on the island of Ireland). The UK is free to amend its package travel arrangements: one suggestion is that the definition of package should change such that a significant travel component is required.

The  UK’s package travel regulations are still aligned with the EU’s directive (they implemented the 2015 directive, agreed when the UK was still a member of the EU). What changed is that, within the EU, a UK operator compliant with UK administered financial protection schemes etc. would be able to sell to any EU consumer with confidence: compliance in the UK meant compliance within the EU. Now, while they may still make cross-border sales to EU consumers and package EU product, they will be exposed to the consumer protection prevailing in EU consumer’s home country. To check national implementations of the Package Travel Directive within the EU, click here . Operators will also need to check with their insurers that they are appropriately covered.

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Package holidays: complying with regulations - guidance for businesses

Guidance for businesses to help them comply with the The Package Travel and Linked Travel Arrangements Regulations 2018.

The Package Travel and Linked Travel Arrangements Regulations 2018: guidance for business

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This guidance sets out how businesses will be affected by the measures in The Package Travel and Linked Travel Arrangements Regulations 2018.

This document provides guidance only and is not a substitute for reading the regulations. It does not provide legal or other advice and, if in doubt as to your obligations, you are strongly recommended to obtain legal advice. Ultimately interpretation of the law is a matter for the courts.

Guidance updated with additional case studies on ‘other tourist services’ and Linked Travel Arrangements (LTAs).

Guidance updated with further case studies on 'other services' element, forming a package and the delivery of 'on premises facilities.'

Guidance updated in light of the UK having left the European Union.

First published.

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Guide to Package Travel Regulations

By Rebecca Somes

It’s important to understand the rules and regulations that come with travel packages. These rules are like the backbone of the relationship between travelers and the travel agents, making sure everything goes smoothly and safely.

A package travel contract is more than an agreement; it’s a legally binding tie between travelers and travel organizers. This contract covers a range of travel services, from transportation to accommodation and other tourist offerings. Recognizing the circumstances under which a contract qualifies as a package is key, enabling you to access the rights and protections within regulatory frameworks. Notably, even if individual components are booked separately, they might still be deemed a package if combined by the traveler, a fellow agent, or the organizer.

At Traveltek, we understand the importance of staying up-to-date with the latest regulations in the travel industry, especially when it comes to the Booking of Linked Travel and Linked Travel Arrangements Regulations 2018. We’re here to support you every step of the way, ensuring that your travel agency complies with these regulations and that your customers can confidently enjoy their package holidays.

Upholding Package Performance

Following the Travel Arrangements Regulations of 2018, travel organizers bear the weight of ensuring faultless package performance. This spans across the spectrum of services detailed in the contract, involving transportation, accommodation, and all tourist services. Should complications or insufficiencies arise, travelers are entitled to compensation and rectification, solidifying their confidence in the services you provide.

With the Booking of Linked Travel and Linked Travel Arrangements Regulations 2018, the package travel contract should be at the heart of your business. It outlines the price of the package, any extra costs, and payment details. At Traveltek, we provide you with tools like iBos and AgentConnect to efficiently manage these essential aspects of your services, ensuring transparency and peace of mind for your customers.

Security through Insolvency Protection

To ensure financial security, package travel regulations include a crucial element known as insolvency protection. This requirement mandates that travel organizers put in place financial safeguards. These measures serve to protect client payments and facilitate repatriation in situations where the organizer encounters financial difficulties or insolvency, giving your customers a peace of mind.

Transparency in Booking Processes

During the booking process, it’s essential to provide clear and comprehensive information about the travel services included in the package. This transparency not only helps clients make well-informed decisions but also reduces the chances of misunderstandings down the road, strengthening their confidence in your expertise and building customer relationships.

Timely Assistance and 24-Hour Support

It’s important to inform travelers about the help they can get while they’re on their trips. This includes important information about healthcare and what to do in emergencies. Having a reliable 24-hour contact point is like a safety guide they can turn to whenever they need assistance. Apps are also becoming an increasingly popular way for your customers to communicate. You can also use apps as a place to store FAQs and to promote and advertise services and offerings.

Empowering Your Travel Technology Expertise

You must understand and convey information about travel contracts, regulations, and rights. Embracing the details of package travel, linked arrangements, and insolvency protection, among other important aspects, enables you to assist your clients in planning confident and outstanding journeys. By continuously expanding your knowledge and promoting informed decision-making, you pave the path for unforgettable, smooth, and worry-free adventures.

The purpose of the Linked Travel and Linked Travel Arrangements Regulations 2018 is to provide clarity and protection to both you, the travel agent, and your customers. With Traveltek products, you can be confident that your business operates by these regulations, ensuring that every contract is concluded with professionalism and compliance.

Using Dynamic Software

To ensure you meet the regulations and requirements needed to provide your customers with peace of mind, you can use dynamic software that will ensure you are using all the correct puzzle pieces to create a safe, secure and legal agreement for your customers. With the use of iSell, you can connect flights, hotel and cruises together in one package. Whilst iBos can enable your staff to access booking details and information securely. All our software options work together to create the ultimate travel technology hub that travel agents and travel companies can benefit from.

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What is a package holiday and what is a linked travel arrangement?

A package is defined by The Package Travel and Linked Travel Arrangements Regulations 2018.

What is a package holiday?

Any type of holiday such as a city break, a beach holiday, a ski trip or even backpacking around the world can be a package holiday. While packages can be ‘ready-made’ by the tour operator, they can also be ‘tailor-made’ to suit each customer’s preferences and budget. 

Essentially, you book a package when you buy two or more travel services together. A package holiday must cover a period of at least 24 hours or involve overnight accommodation and is a combination of at least two different types of travel services, which are listed below:

• transport (such as a flight, coach or train but not transfers from an airport)
• accommodation (such as a hotel, villa or apartment)
• car rental 
• a tourist service (such as theme park tickets, tours, passes or equipment for sports such as skiing) where this is a significant part of the holiday, either because of its value or because it is an essential part of the trip.

It counts as a package holiday if your travel company:

• Has asked you to pay a single price through a single payment, or
• Has let you select a combination of services – such as a flight and accommodation – before you agreed to pay for them, or
• Charged you an inclusive or total price for all the services you bought, or
• Advertised or sold the travel services to you as a package or similar term, or
• Sold you one travel service; and then transferred your details, including your payment details to another company which you then booked another travel service through within the space of 24 hours.

A cruise is a package holiday. 

You can book a package holiday direct with a tour operator or through a travel agent. 

Examples of a package holiday

A travel agent finds a holiday in Portugal for you. You pay a single price and make a single payment for the flights and a villa.

You are booking a trip to Japan through a travel company’s website, you select flights, train tickets and hotels, and are charged a total price.

You ring up a travel company to book a city break to Bath, with a one-night stay in a hotel, the trip includes return coach travel and a ticket to the Roman Baths.

What is a linked travel arrangement?

A linked travel arrangement is a combination of at least two different types of travel services (listed below) – but it is how these travel services are sold which defines it as a linked travel arrangement. 

Types of travel services covered by a linked travel arrangement:

It counts as a linked travel arrangement if your travel company sells it to you by: Arranging the separate selection and separate payment of each of your travel services - such as a flight and accommodation - during a single visit (either to their shop, website or other point of sale). This means you will have separate contracts with the individual travel service providers, or

Arranging for you to make a booking for one travel service (for example a flight) and then arranging for you to be offered, in a targeted manner – such as through a link provided in the confirmation, or by email – another travel service from another trader (such as a car hire firm) which you then book less than 24 hours later. 

Examples of a linked travel arrangement

If you buy a flight through a travel company and, having bought the flight, you then, during the same visit to their shop or the same session on their website, separately book and pay for, or agree to pay for, a hotel.

If you buy a flight and then receive an email from another company for hotel accommodation at the same destination and for the same dates. You then click on the email and end up booking a hotel within 24 hours of booking the flight.

What protection do I get with a package holiday?

A package holiday has both financial and legal protection.

Legal protection means your travel company is responsible for making sure that you get the holiday you paid for. If something isn’t provided or isn’t as expected, and your travel company or its suppliers is at fault, they will need to sort this out for you – either resolving the issue, offering an alternative or providing a full or partial refund. In some instances you may be able to claim compensation.

Financial protection means that if the company you have booked with goes out of business, you should receive a refund if you are yet to travel, or be brought home if you are already on holiday and your package includes return transport. For more information see Is my money protected when I book a trip? [link]

What protection do I get with a linked travel arrangement?

A linked travel arrangement only has financial protection – and this is at a lower level than if you bought a package holiday. The financial protection provides some cover if the company that arranged your linked travel arrangement goes out of business. For more information see Is my money protected when I book a trip?

As there is no legal protection covering the whole linked travel arrangement, any complaints about the provision of the services must be directed to the service providers themselves.

How will I know if I’m booking a package holiday or a linked travel arrangement?

Your travel company should provide you with information, confirming that you’re booking a package or a linked travel arrangement.

If it’s a package you will be told about the key rights you have under the Package Travel Regulations and a link or website address to the Package Travel Regulations should be provided. 

If it’s a linked travel arrangement, you must be given the following information: 

• You will not benefit from any of the rights that apply exclusively to package holidays 
• That each service provider will be responsible for the proper contractual performance of that particular service 
• There is insolvency protection for the failure of the linked travel arrangement facilitator
• Where you can read the full Package Travel Regulations. This will likely be via a link on the company website or through the company’s terms and conditions.
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The package travel regulations 2018.

05 October 2018

By Ian Brown

On 1 July 2018, The Package Travel and Linked Travel Arrangements Regulations 2018 (PRT 2018) came into force and replaced the Package Travel, Package Holidays and Package Tours Regulations 1992 (PTR 1992). Both pieces of legislation are designed to give protection to holidaymakers and redress for when things go wrong, but PTR 1992 had grown increasingly outdated owing to the way in which holidays have been sold in recent years. PTR 2018 is certainly to be welcomed as giving greater protection to consumers.

PTR 1992 came in to force at a time when holidays were not sold via the internet, for example. It applied to package holidays (which comprise any two of flights, overnight accommodation, and/or 'other tourist services') for an all-inclusive price. It gave tourists an ability to seek compensation from their tour operator in circumstances where the holiday supplied was not as advertised or when a tourist was injured whilst on holiday. The tour operator could be held responsible for the negligent acts or omissions of its agents or subcontractors - for example the hotel at which an accident might have occurred.

Case law has developed over time on various questions surrounding liability and the law is fairly settled in that the safety standards applicable were those of the country in which the accident occurred.

With internet holiday sales increasing, tour operators and travel agents had sought to avoid the provisions of PTR 1992 in many ways such as through creative terms and conditions and 'dynamic' creation of customisable holidays, matching suppliers of holiday components and itemising the cost, thus avoiding the 'all-inclusive price' requirement of a package.

The PTR 2018 gives effect to the Package Travel Directive issued by the European Union. The scope of what constitutes a package holiday is now much wider and reflects the way in which holidays are bought and sold. 'Package' is given a lengthy, wide definition.

It includes a combination of at least two different types of travel service for the purpose of the same trip if the services are provided by one trader or purchased from a single point of sale (e.g. a website), advertised as a package, sold at an inclusive or total price or combined after the conclusion of a contract where the trader gives the traveller a selection of different types of travel services.

Travel service includes transport, accommodation, car rental and other tourist services which are an essential feature of the combination.

Implied into every package holiday contract is a term that the services provided will be performed properly because the provider of the package holiday will be held liable for any 'lack of conformity' which means a failure to perform or improper performance of travel services included within the package. This means that the organiser of the holiday is liable to compensate where the holiday is sub-standard, advertised facilities are not available, or injury or illness is sustained as a result of the holiday supplied.

There is, in all practical reality, no great change in the liability regime - it is the widening of the type of holiday 'caught' by the regulation, that makes the regulation wider in its effect.

The PTR 2018 also gives financial protection to travellers in the event of a supplier failure. It also allows for cancellation without termination fees where an essential part of the holiday booking changes. This could comprise the actual accommodation, the standard of accommodation or facilities, the place of departure and destination, the type and standard of transport or a service or facility advertised as prompted as forming part of the package.

The PTR 2018 does allow suppliers to change prices for holiday in certain circumstances, provided the right to do so is reserved within any holiday terms and conditions and price increases are a direct consequence of exchange rate changes, taxes or fuel or power charges. Any increase of more than 8% of the total cost of the holiday will allow a traveller to cancel without termination fees.

Linked Travel Arrangements (LTA)

It is important to note that the PTR 2018 define LTA's and confirm that they are not package holidays and therefore do not come with the same protection discussed above. An LTA is where a person buys one part of a holiday with one retailer and then may follow a link ('click-through') and purchases another element from another retailer. These will constitute two separate transactions and therefore are not a package.

The implementation of PTR 2018 is to be welcomed by tourists because not only does it provide protection when things go wrong (as its predecessor did), but it reflects the way in which modern day holidays are sold and seeks to prevent avoidance of the provisions through creative drafting of terms and conditions or clever website engineering.

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The package travel and linked travel arrangements regulations 2018, you are here:.

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This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Package Travel and Linked Travel Arrangements Regulations 2018 No. 634

Responsibility for the performance of the package

15. —(1) The provisions of this regulation are implied as a term in every package travel contract.

(2) The organiser is liable to the traveller for the performance of the travel services included in the package travel contract, irrespective of whether those services are to be performed by the organiser or by other travel service providers.

(3) The traveller must inform the organiser without undue delay, taking into account the circumstances of the case, of any lack of conformity which the traveller perceives during the performance of a travel service included in the package travel contract.

(4) If any of the travel services are not performed in accordance with the package travel contract, the organiser must remedy the lack of conformity within a reasonable period set by the traveller unless that—

(a) is impossible; or

(b) entails disproportionate costs, taking into account the extent of the lack of conformity and the value of the travel services affected.

(5) Where the organiser does not remedy the lack of conformity within a reasonable period set by the traveller for a reason mentioned in sub-paragraph (a) or (b) of paragraph (4), regulation 16 applies.

(6) Where the organiser refuses to remedy the lack of conformity or where immediate remedy is required, the traveller—

(a) may remedy the lack of conformity; and

(b) is entitled to reimbursement of the necessary expenses.

(7) A traveller to whom paragraph (6)(a) applies is not required to—

(a) set a reasonable period pursuant to paragraph (4), and

(b) if such a period has been set, wait until the end of the period,

before the traveller remedies the lack of conformity.

(8) Where the organiser is unable to provide a significant proportion of the travel services as agreed in the package travel contract, the organiser must offer, at no extra cost to the traveller, suitable alternative arrangements of, where possible, equivalent or higher quality than those specified in the contract, for the continuation of the package, including where the traveller’s return to the place of departure is agreed.

(9) Where the organiser offers proposed alternative arrangements which result in a package of lower quality than that specified in the package travel contract, the organiser must grant the traveller an appropriate price reduction.

(10) The traveller may reject the proposed alternative arrangements offered under paragraph (8) only if—

(a) they are not comparable to the arrangements which were agreed in the package travel contract; or

(b) the price reduction granted is inadequate.

(11) Where—

(a) a lack of conformity substantially affects the performance of the package; and

(b) the organiser fails to remedy the lack of conformity within the reasonable period,

the traveller may terminate the package travel contract without paying a termination fee and, where appropriate, is entitled to a price reduction, or compensation for damages, or both, in accordance with regulation 16.

(12) If—

(a) the organiser is unable to make alternative arrangements, or

(b) the traveller rejects the proposed alternative arrangements in accordance with paragraph (10),

the traveller is, where appropriate, entitled to a price reduction, or compensation for damages, or both, in accordance with regulation 16 without terminating the package travel contract.

(13) If the package includes the carriage of passengers, the organiser must, in the cases referred to in paragraphs (11) and (12), also provide repatriation of the traveller with equivalent transport without undue delay and at no extra cost to the traveller.

(14) Where the organiser is unable to ensure the traveller’s return as agreed in the package travel contract because of unavoidable and extraordinary circumstances, the organiser must bear the cost of necessary accommodation, if possible of equivalent category—

(a) for a period not exceeding 3 nights per traveller; or

(b) where a different period is specified in the Union passenger rights legislation applicable to the relevant means of transport for the traveller’s return, for the period specified in that legislation.

(15) The limitation of costs referred to in paragraph (14) does not apply to persons with reduced mobility as defined in point (a) of Article 2 of Regulation (EC) No 1107/2006 of the European Parliament and of the Council, concerning the rights of disabled persons and persons with reduced mobility when travelling by air( 1 ) and any person accompanying them, pregnant women and unaccompanied minors, as well as persons in need of specific medical assistance, provided that the organiser has been notified of their particular needs at least 48 hours before the start of the package.

(16) The organiser’s liability under paragraph (14) may not be limited by reason of unavoidable and extraordinary circumstances if the relevant transport provider may not rely on such circumstances under the applicable Union passenger rights legislation.

OJ No L 2004, 26.7.2006, p. 1. Point (a) of Article 2 provides that ‘person with reduced mobility’ means “any person whose mobility when using transport is reduced due to any physical disability (sensory or locomotor, permanent or temporary), intellectual disability or impairment, or any other cause of disability, or age, and whose situation needs appropriate attention and the adaptation to his or her particular needs of the service made available to all passengers”.

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