Delegates at the Abta Travel Law Seminar were told travel firms should start this process after the UK referendum on EU membership on June 23 and not to wait for the outcome of a government consultation on PTD, which is due to be launched this summer.
If the UK votes to remain in the EU, the government will have until January 2018 to pass laws to ensure compliance with the directive. Travel firms will have a further six months to ensure compliance with the new regulations.
Claire Ingleby, a director at mb Law, said: “My strong recommendation is that post the referendum you should start the process without delay.
“You need to spend time giving serious consideration to how the new legal landscape will affect your current business model. The new directive significantly changes the legal environment for the sale of travel services.”
The directive introduces the new concept of the Linked Travel Arrangement (LTA). This is not a package but involves selling two travel services for the same trip through separate contracts with individual suppliers.
Susan Deer, Abta’s senior solicitor, said: “2018 is a lot closer than you think. You need to look at your current business model and carry out an A-to-Z review of current processes.”
She said it could be easy for agents to think they are selling an LTA when they are creating a package instead.
“You could end up selling a package even if you don’t want to,” she said. “You may be trying to sell an LTA but if you don’t communicate the correct pre-contract information to customers, you will be liable as if you’re selling a package.
“You need to have a contract that protects your business and communicates to the customer. You should plan strategically to cover the entire customer journey to cover your business.”
Maria Pittordis, from Hill Dickinson, said amending booking conditions should be at the top of “to do” lists for travel firms.
“The directive does allow you to do certain things if they are in the booking conditions,” she added. “It’s quite important to go through the directive and make sure everything that needs to be covered is covered.”
