Online Travel UK, the trade body for OTAs, has warned Britain could lose its place as a global leader in the sector if reforms to consumer protection are ignored.
A white paper warns reforms to Atol and the Package Travel Regulations (PTRs) are needed “to prevent confusion for customers and increased complexity for responsible businesses”.
The report says there is a need to simplify travel regulation, including those of Linked Travel Arrangements, which affect OTAs. It said: “LTAs should be removed to align with EU reforms. Definitions of travel packages should be simplified and clarifications made to insolvency protections.”
The document called for uniformity across markets, something that would benefit OTAs, which can be global in their approach.
The report said: “Travel protection rules should be updated to reflect modern booking behaviours and digital platforms. Where appropriate they should align with travel protection rules in the EU to avoid unnecessary complexity for businesses and provide clarity for consumers.”
The group claims 77% of consumers have booked through an OTA in the past two years, rising to 81% among millennials. “The right to appoint an intermediary without facing surcharges or restricted access must be preserved to protect choice, trust and fairness,” it said.
Online Travel UK has 11 members, including On the Beach, Expedia and Airbnb.
It said: “Online travel companies make it easier and more affordable for millions of UK families to travel. But without modernised rules and a level, competitive playing field, these benefits risk being eroded, leading to reduced choice, higher prices and outdated protections.
“We urge government and regulators to act and look forward to working together to secure a thriving, innovative travel sector that delivers for consumers and the economy.”
OTAs play an increasingly bit part of the travel landscape, with loveholidays now licensed for five million passengers, making it the third biggest Atol-holder. Half of the top 10 Atol holders are now OTAs.
