Travelling in the New Age: The Package Travel and Linked Travel Arrangements Regulations 2018 (PTR).

In light of the collapse of Thomas Cook Group plc, we consider the advent of the PTR, why it exists and who is protected.

Background

It has been widely recognised for some time that with the advent of the internet the existing Package Travel Directive of 1990 had become outdated, rendered inadequate by the fundamental changes in the way holidays are now booked by travellers across the globe.

Therefore in 2015 the European Parliament published the final version of the Package Travel Directive 2015/2302 (the Directive) recognising that there existed a ‘grey zone’ where traveller protections were not sufficient under the old directive. 

As per Article 1 of the Directive

“The purpose of this Directive is to contribute to the proper functioning of the internal market and to the achievement of a high and as uniform as possible level of consumer protection by approximating certain aspects of the laws, regulations and administrative provisions of the Member States in respect of contracts between travellers and traders relating to package travel and linked travel arrangements.”

The updated Directive was envisaged to make the relevant law more suitable for the single market, to remove ambiguities and to close legislative gaps (in line with EU principles such as subsidiarity, proportionality, harmonization and direct effect).

The Directive was intended to be implemented by member states of the European Union by 1st January 2018 and has ‘Direct Effect’ within member states.

The "PTR"

The Regulations came into force on 1st July 2018 in England and Wales - now known as the Package Travel and Linked Travel Arrangements Regulations 2018 (for short 'PTR').

They apply to any new packages or Linked Travel Arrangements (‘LTA’s) entered into on or after 1 July 2018.

The Regulations generally apply to all sorts of travel arrangements including cruises, because most cruises are a combination of carriage of passengers and accommodation and sometimes additional travel services, unless they are shorter than 24 hours and do not include overnight accommodation.

Who is Protected?

Directive 2015/2302/EU states: “the majority of travellers buying packages or linked travel arrangements are consumers within the meaning of Union consumer law.”

Each legal instrument tends to have its own definition. However, the vast majority of the definitions state: ‘A consumer is a natural person, who is acting outside the scope of an economic activity (trade, business, craft, liberal profession)’.

The European parliament recognised that member states implement directives in different ways, however it is generally accepted that under European Union Consumer Law the Directive’s definition of a ‘traveller’ is wider than the traditional definition of consumer because it can mean ’any traveller’ and include some business travellers belonging to a specific member state.

(i) England & Wales

From a United Kingdom traveller’s perspective the protection is limited - the regulations only apply to packages sold or offered for sale in the United Kingdom.

The Regulations apply to package travel contracts and linked travel arrangements sold, or offered for sale, in the UK no matter where the seller is established. Apart from distinctions made in relation to insolvency protection (see later), no distinction is made between traders based in the UK, elsewhere in the EU, or outside the EU.

It is also important to note that the PTR is implied into every ticket contract – therefore the Regulations will apply regardless of what law and jurisdiction clause is included in the ticket contract.

Therefore even if you are an operator based in Miami, if you sell holidays in the UK to UK citizens the PTR will apply.

(ii) In the EU

EU Citizens (especially when considering the Rome Convention) are entitled to the mandatory protections of their own country’s consumer laws and have the dispute heard before the courts of their own country.

Other member states will also have their own version of the PTR which will apply to packages sold within their jurisdiction in a similar way.

For instance a traveller from Germany will therefore find themselves protected in a similar way to a UK citizen because Germany will have implemented the Directive through their national law.

What does "protection" mean?

In light of what has happened with Thomas Cook it is important to note that the PTR is focussed on protecting travellers' and consumers' rights and there are mandatory provisions within the PTR in respect of organisers indemnifying travellers.

Therefore if your package holiday was booked after 1 July 2018, then you are 'protected' in that via the Atol policy you will be able to recover the cost of your holiday.

If you booked separate flights and accommodation your holiday may not be classed as a package and therefore you may not be protected.

However it is important to check the details because if you booked your flight online (for example) and then booked accommodation on the same site - then you may have a linked travel arrangement which may be protected.

For further information or advice please contact Howard Quinlivan or Paul Hughes at Thomas Miller Law - on +44 (0)1752 226 020 or via email on [email protected] or [email protected].