The PTRs are currently subject to a review by the Department for Business, Energy and Industrial Strategy (Beis) following Brexit, now that the UK no longer needs to implement the EU Package Travel Directive – the directive on which the PTRs are based.
However, the review will run alongside a separate EU review of the PTD and could, according to Abta senior solicitor Paula Macfarlane, result in the UK and EU diverging more significantly in terms of how package travel is regulated in future. "It could be happening now," she said.
"The UK review is looking at, ’can we simplify a few things to make things work better’. There could be division here, [we] could be going different ways," she explained, highlighting to delegates this could affect businesses selling packages in other EU markets.
"It’s not going to be wholesale changes to [the] regulations," said Macfarlane. "Beis is looking at smaller improvements and simplifications."
Earlier this year, the government issued a response to its consultation on reforming competition and consumer policy. Beis is hoping to use an upcoming bill or legislative vehicle put forward its initial limited reforms to the PTRs.
Macfarlane set out some of the areas where there could be reform, such as formalising a refund credit note regime of sorts such as that championed by Abta during the pandemic in recognition of the fact that the 14-day refund rule isn’t always achievable.
Other issues raised included the debate around how to determine the extent to which any enforced change to a package is significant enough to constitute a difference requiring a refund or payment of compensation, and whether the UK could adopt other EU protections such as EU261, and at what level compensation would be paid for this versus the EU.
Abta’s director of public affairs, Luke Petherbridge, said the fact the EU was already reviewing the current PTD just seven years after it was implemented in 2015 showed the extent to which Covid had exposed flaws in the way in which package travel is regulated. The previous legislation, he said, stood for around a quarter of a century.
Petherbridge touched on other potential areas for reform, including how national travel advisories – such as those issued by the Foreign Office – interact with package travel and insurance, and potential limitations on pre-payments.
He said with the EU consultation closing on Tuesday (10 May), the new rules could be introduced as early as Q4 this year or early next year owing to the EU parliament’s strong pro-consumer stance. "I think there will be significant pressure to get this through quickly," he said.
With regards to the UK review, he added: "Beis can do what it likes with the UK PTRs. I think this will be relatively limited and targeted."
