Following Brexit, the UK retained the PTRs, which were its interpretation of the EU Package Travel Directive.

The previous Conservative government consulted on proposed changes to the PTRs in September 2023, but progress stalled as pressure mounted on the Conservatives, which eventually led to last July’s election.

Now, the new Labour government has launched a new 12-week consultation on the PTRs, which will run until 30 June.

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“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," said the Department for Business and Trade (DBT).

The consultation sets out a range of proposals, which would represent the first changes to the regulations since 2018. Here are some of the key takeaways for the travel trade.

Flexibility on insolvency protection

Currently, if a travel organiser offers a package that includes transport and relies on trust funds for insolvency protection, it must have insurance to cover repatriation and, if necessary, accommodation before repatriation.

The alternative being proposed is for organisers to dispense with insurance and instead “achieve the same result through limited bonding through an approved body”.

“The organiser will have flexibility to choose the amount of refund liabilities it wishes to protect through a bond," said the DBT. "Monies above that amount will have to be held on trust... in most cases, until the contract is fully performed.”

The DBT said the alternative was to take no action, but stressed: “Most businesses agree that having multiple routes to comply with the regulations is preferable."

End of the line for linked travel arrangements?

LTAs are arrangements made up of at least two distinct types of travel service bought for the same trip or holiday, but do not meet the definition of a package.

One type involves two or more services for the same trip under separate contracts with individual providers, upon a single contact with a point of sale.

The other is separate selection and payment of two or more travel services for the same trip through targeted linked booking processes within 24 hours without transferring the traveller’s payment details.

The government said few businesses use LTAs and that they could be confusing for consumers. It is considering leaving them as they are or limiting the ways they can be created, replacing the two types with a single definition.

According to the DBT, this second type of LTA is rarely used and could be removed. “We could go further to bring clarity to how an LTA is defined, although this would need to be balanced against narrowing the scope of LTAs and thus reducing the number of bookings which enjoy the protections of the regulations.”

Removing territorial restrictions on insurance cover

Currently, if an organiser is providing a package that includes transport and relies on a trust fund for insolvency protection, it must have insurance to cover repatriation and – if necessary – accommodation for the traveller before repatriation.

As the regulations stand, policies must be held with an insurer authorised in the UK, Channel Islands or Isle of Man. However, the government said relaxing territorial restrictions on where the insurer is authorised “could widen the choice available... lower costs and make more packages available to travellers”.

Other tourist services as part of a package

The four types of travel element that can be combined to form a package or LTA are transport, accommodation, motor vehicle hire and "other tourist services". Examples of the latter include concert tickets, guided tours, ski passes and spa treatments.

Currently, "other tourist services" can form part of a package if they are combined with a service from one of the other categories and make up a "significant proportion" of the combination or are an "essential feature" of it.

However, the rules allow for the inclusion of minor services to a combination without the creation of a package. It is to this aspect the government wants to bring clarity.