PACKAGE TRAVEL DIRECTIVE

The European Commission's (EC) long-awaited plans to revise the Package Travel Directive have been delayed again.  A decision on whether and how to proceed with these plans is not now expected until the "late spring".

At the end of January, chief executives of European travel companies met the EU commissioner responsible for package travel policy, Viviane Reding, to discuss their concerns about revising the directive.  Ms Reding also met consumer organisations at a separate meeting on the same day.

The Commission is now examining three main options: modernising the current directive, leaving it as it is, or scrapping it entirely.  The idea of scrapping the directive (and not replacing it) is new, and some consumer representatives have reacted with alarm to it.  The European Consumer Consultative Group (ECCG), a forum set up by the EC to consult national and European consumer organisations, said:

"Scrapping the directive would entail serious consequences for consumers, including most probably a loss of consumer protection, increased market fragmentation and unequal market conditions for consumers and businesses.

It would also lead to major uncertainty as to the fate of national laws designed to implement the directive because the European legal base would be lost and national law could develop in all directions."

ETOA’s position is that the current legislation has been rendered obsolete by new technologies and the advent of low-cost airlines. Consumer protection now exists in a limited and non-explicit field. So the Directive should be scrapped.

Scope of the Directive

Central to the debate over the future of the directive has been the extent to which dynamic packages should be brought within the scope. 

There are calls for the definition of "package" to be changed so that it excludes "other tourism services".  At present, a "package" is defined as a combination of two or more of the following elements: accommodation, transport and "other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package".  The UK's Tourism Alliance is concerned that this last element catches small domestic businesses, making it difficult for them to co-operate locally in providing value-added products for their customers without having to comply with the regulations. An example could be a hotel offering golfing weekends in association with the local golf club.

Process

When published, the new proposal will be considered by the European Parliament and Council (member states).  This could take several months and the approval of both institutions will be needed for the Directive to be adopted. Member states will then have two/three years to implement the new measure in their national law.

Timing

Failure to publish the proposed directive by the late spring could mean further lengthy delays.  Summer 2014 sees new elections to the European Parliament and the appointment of a new college of European Commissioners to take charge of the European Commission.  The legislative process effectively comes to a halt at such times.

Source: ETOA