The government launched a 12-week consultation on reform of the Package Travel Regulations (PTRs) on Monday, including proposals to remove some domestic packages from the regulations.
The consultation by the Department for Business and Trade (DBT) aims to “retain key safeguards” for consumers while “making the most of the opportunity to reshape the regime”, according to a forward by minister for employment rights, competition and markets Justin Madders.
Proposed changes include removing domestic packages which do not include a travel element from the regulations, improving the flexibility of insolvency protection provisions for non-flight packages, and simplifying the definition of Linked Travel Arrangements (LTAs) by limiting the ways in which these can be created.
The proposals also include increased flexibility for organisers in the provision of insolvency protection and clarification of the rights of organisers to redress from suppliers when they are required to refund consumers.
The DBT said in a statement: “The government wants the regulations to give consumers appropriate protections when buying package holidays, support growth in the travel sector and encourage innovation, maintain trust in the travel sector [and] enable some flexibility for business in deciding how to secure consumer protections.”
It noted: “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.
“We are seeking views on ways to keep a high level of consumer protection but reduce the burdens on organisers.”
In his forward to the consultation document, entitled ‘Package travel – updating the framework 2025’, Madders explains: “The government’s intention is to retain key safeguards of consumer protection that underpin the PTRs while making the most of the opportunity to reshape the regime, so it supports growth in the sector and greater consumer choice.
“I particularly welcome input on proposals that aim to free up existing businesses to offer innovative new packages and encourage new businesses into the market.”
Madders noted that the Department for Transport (DfT) and Civil Aviation Authority (CAA) “are working on a programme of Atol reform exploring measures that aim to improve financial resilience . . . while limiting the financial exposure to UK government and taxpayers.
“We will continue to work closely with DfT and the CAA to ensure a collaborative approach to any future policy development or changes.”
Industry players have until midnight on Monday June 30 to respond to the proposals. The government “will then make a final decision on whether and how to change the PTRs”.
Abta director of public affairs Luke Petherbridge said: “It’s unsurprising, with a new government in place, that ministers have chosen to look again at proposed changes to the Package Travel Regulations. But we would urge them not to miss this opportunity to make worthwhile changes to the regulations.
“We very much welcome the government’s overall focus on promoting growth and would encourage ministers to explore ways that regulatory burdens on travel businesses can be reduced.”
He noted Abta “has long championed the benefits of consumer protection” but said: “There are several areas where the current regulations have either proven unworkable or where existing rules place a disproportionate burden on the travel organiser.
“Abta has already put forward several proposals for reform that we believe align with the government’s growth agenda.
“We look forward to consulting with members to ensure their voices are heard and will be organising a range of opportunities to gather members’ views.”
Specialist travel association Aito said it was “deeply disappointed and frustrated” by the proposals which “fail to deliver the meaningful reform our industry urgently needs, appearing to sideline the needs of outbound travel businesses in favour of UK staycations”.
Head of industry affairs Christina Brazier said: “Following years of turbulence, this was a crucial opportunity to enact real change. Our members invested considerable time engaging with the call for evidence, highlighting significant challenges created by the current regulations – concerns that seem to have been ignored.
“As a result, outbound tour operators will continue to face overwhelming burdens and effectively act as ’insurers of last resort’ to care for customers in situations beyond their control, while travel insurers and suppliers evade accountability – recent disruptions at Heathrow airport being a prime example.
“Furthermore, SMEs will remain constrained by a regulatory framework that fails to acknowledge their distinct challenges, despite operating under vastly different conditions from larger travel businesses that require tailored regulations.
“With the CAA’s Atol reform also underway, we, and many others in the industry, consistently urged government departments to work together to create one simple, streamlined regulatory regime.
“Yet, the current overlap of financial protection measures looks set to continue – escalating costs and administration burdens for tour operators whilst prolonging consumer confusion.”
She added: “The government has missed a key opportunity for meaningful reform, opting instead for minor tweaks that will make little difference to businesses or consumers.
“We will consult with our members on these proposals and urge policymakers to rethink their approach, working collaboratively with the industry to deliver real, impactful change.”
