BRIEFING ON THE PACKAGE TRAVEL DIRECTIVE
CONSUMER PROTECTION TOURISM
Executive Summary The Commission’s proposal to revise the Package Travel Directive addresses the existing legal grey zones to a certain extent. The FIA proposes the following additional provisions to improve consumer protection:
Broaden the scope of the definition of “package travel” so as to maintain flexibility for future methods of booking travel services;
Provide sufficient protection for “assisted travel arrangements”, as the revision of the Directive aimed at taking into account new ways of booking;
Provide more transparent information to the consumers regarding the party ultimately responsible for them and;
Base the proposal on the principle of targeted maximum harmonisation in order to avoid a reduction of existing rights in many Member States.
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Legislative Background The Directive from 1990 did not take sufficient account of new developments in the tourism field, notably the growing role of the internet in travel booking. Nowadays, an increasing number of travellers book their holidays online, often combining services from different operators for, so‐ called, “dynamic travel packages”. On 9 July 2013, the Commission released its proposal for a Directive on package travel and assisted travel arrangements; the proposal gives more precision on the definitions and the scope of application. It encompasses new ways of booking, such as “dynamic packages”, now covered as “assisted travel arrangements”. Furthermore, the proposal improves information to travellers on the main characteristics of the travel services. Finally, the liability for the performance of the package is increased and compensation, in case of disruption or damages, is strengthened.
FIA Region I position The FIA welcomes the Commission’s proposal aiming at revising the Package Travel Directive, since it will provide consumers with increased certainty on prices, services and redress mechanisms. The new text seeks to protect travellers in the new booking environment and provide traders with more certainty. The Commission thus extends the protection granted to travellers for “assisted travel arrangements”. In addition to these changes, we believe that the following points must be addressed for this legislation to be truly lasting and effective.
Definitions The new definition of “package travel” should not be based so restrictively on the booking systems available today. It is hard to foresee how travel services will be presented and how bookings will be made in the future. Thus, the FIA calls for clarifying that the list of services detailed in Article 3 is non‐exhaustive as a way to maintain flexibility for future ways of booking travel services. While we welcome the approach that all traders should be responsible as organisers “where more than one trader meets the criteria referred to in point (b) paragraph 2” (Art. 3 §8), consumers should be able to identify the party ultimately responsible for their travel arrangements. The Directive should mandate the disclosure of the organiser ultimately responsible on all communications to consumers. In addition, the consumer should be able to address messages, complaints or claims to the responsible person at no extra costs. The request of the traveller should be treated by the organiser without undue delay.
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Travellers booking via assisted travel arrangements deserve better protection The FIA deplores that the Directive, aiming at encompassing combined travel services, does not provide more stringent requirements regarding the “assisted travel arrangements”. Currently there is no obligation for service providers offering “assisted travel arrangements” beyond protection against insolvency. Provisions regarding information or alteration of the contract terms and liability for performance of the services do not apply to the “assisted travel arrangements”, although consumers are more and more frequently booking travel services through separate contracts. Therefore, we believe that the provisions of both package travel and “assisted travel arrangements” should be aligned in order to offer the same protection for consumers.
Business travellers deserve protection as well An exclusion of business travel appears excessive since this would also affect, for instance, the beneficiaries of incentive travel. As this type of travel presents much the same characteristics as leisure travel, employees taking an incentive trip deserve the same level of protection as other travellers.
Level of harmonisation The Commission’s proposal lacks of clarity when it comes to the level of harmonisation requested by the Directive. The FIA does not support full harmonisation, as it would lead to a reduction of existing rights in Member States where more protection is granted. Targeted maximum harmonisation should be preferred, as it would ensure minimal rights throughout the European Union, while safeguarding the higher level of protection granted in some Member States.
Alteration of the contract terms The FIA calls for a clarification of what would constitute significant changes in contract terms by means of a non‐exhaustive list. As an example, it is our Members’ view that changes in the itinerary of cruises – such as the cancellation of stops at certain destinations – qualify as a significant change. Late changes to the itinerary may indeed render the cruise worthless to travellers. The change might be justifiable in the case of “compelling” circumstances such as terrorist threats, or
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unavoidable strikes at the destination. However, in the case of late changes regarding the main characteristics of the travel service, organisers shall offer their customers an alternative service of the same quality.
Mutual recognition of insolvency protection While the FIA fully supports the fact that Member States shall recognise insolvency protection under the law of the Member State of establishment, we call on the Commission to set minimum harmonised provisions regarding the level of insolvency protection between the different Member States.
Liability for the performance of the package In the event of a cancellation caused by unavoidable and extraordinary circumstances, the organiser shall be made liable to assist stranded travellers in finding adequate accommodation and provide assistance to them for a maximum of 5 nights. In accordance with the requirements made by the FIA in the air passenger rights regulation, we believe that assistance may be limited to 100 EUR for each of the first three nights and to 50 EUR for each subsequent night. In addition, people with specific needs should benefit from increased assistance, regardless of pre‐notification requirements.
Fédération Internationale de l’Automobile (FIA) Region I office FIA Region I represents 108 Touring and Motoring Clubs in Europe, the Middle East and Africa, which total more than 37 million members. The FIA represents the interest of these members as motorists, public transport users, pedestrians and tourists. The FIA’s primary goal is to secure a mobility that is safe, affordable, sustainable and efficient. Learn more at fiaregion1.com
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