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between online traders into a framework designed for traditional tour operators in the 1990s.”
Associations representing more
traditional businesses, including Abta and the European Travel Agents’ and Tour Operators’ Association (Ectaa) also expressed concern. Abta suggested the directive would now fail “to capture online sales” (see story, right). But Klenner described the ATA
proposals as “unworkable”, insisting the directive “is worse than it was” when the EC published the original draft of a new PTD in July 2013. “It makes clear that a dynamic
package put together on a website will be the same as a traditional package. In essence we are OK with that,” he said. “The problem arises with the ATA.
Essentially, if you are on an airline site and presented with a targeted advertisement – say you have booked flights to Rome for three nights and you’re presented with some hotel offers – if you click through and book a hotel, that will be an assisted travel arrangement and require protection. “But where you have a targeted
advert, the two traders do not exchange information, so there is no way for them to reconcile the information for that arrangement. This will make it impossible to apply certain business models.” However, Klenner added: “The text is
agreed in principle. We can’t stop this anymore. It will create huge complications. With a targeted ad there is no way of telling whether a transaction has taken place. I hope the European Commission and the Parliament push back on this.” The directive will now go to ‘trilogue negotiations’ between the Council, European Parliament and European Commission to produce the final wording. Europe’s Parliament agreed a revised draft in March but has reportedly agreed to acquiesce to the council on the issue. The Council of Ministers began
examining the text only in October and appears to have rushed to a conclusion, saying it aims to conclude the reform “as soon as possible”. A final draft is expected in spring, with the directive likely to come into force in the UK in 2017.
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70 •
travelweekly.co.uk — 11 December 2014
travelweeklybusiness EC issues latest plan to amend the PTD. By IAN TAYLOR
ABTAWARNS EC'S PLANNED CHANGES TO PTDWEAKENCLICK-THROUGH PROTECTION
Agreement on reform of the Package Travel Directive (PTD) by Europe’s Council of Ministers last week provoked concerns at Abta.
The association warned: “Some changes
suggested by the council put at risk the objectives set by the European Commission when they launched the proposals for modernising the PTD.” Abta cited a failure “to adequately
capture linked online sales”. It added: “We are concerned the council has seemingly reduced consumer protection attached to Assisted Travel Arrangements (ATAs).” ATAs are a new category of protected booking which, it is proposed, would apply to ‘click-through’ sales between websites and require consumer financial protection, but not have the status of package holidays. Abta chief executive Mark Tanzer said:
“Certain changes are unsatisfactory and not in line with the original objectives set by the commission – namely the extension of clear and transparent consumer protection and a fairer regulatory framework for travel businesses.” However, the European Council insisted:
“An overwhelming majority of EU tour operators and travel agents…are set to greatly benefit from the reform.”
ECTAA: PTD WILL BE HARMFUL TO ENTIRE TRAVEL INDUSTRY
Pan-European travel industry associations representing agents, tour operators and hotels warned the revised PTD would be “damaging” and called on EU ministers to postpone agreement. The European Travel Agents’ and Tour
Operators’ Association (Ectaa) accused the Council of Ministers of acting “without assessing the impact of numerous decisions taken during the last few weeks” and warned the proposed directive would “be harmful to the entire travel industry and especially to agents and tour operators”. Ectaa said: “Package travel organisers and traders will be overburdened by rules that
Mark Tanzer The council claimed the directive would
“cut red tape and reduce the average cost of offering packages”, and it suggested: “By harmonising rules and compliance costs, the new conditions will favour a level playing field.” Baroness Neville-Rolfe, parliamentary under-secretary at the Department for Business, Innovation and Skills, agreed the directive on behalf of the UK government at a meeting of the Competitiveness Council – one of 10 ‘configurations’ of the Council of Ministers. Abta said: “We will continue to work to
secure a modern and effective directive that is workable and beneficial for consumers and travel businesses.”
have not been properly assessed and do not apply to all traders offering travel services on the market.” It added: “Ectaa strongly regrets that the
presidency proposes an à la carte approach regarding the scope [of the directive], allowing member states to decide whether to include certain travel services.” Ectaa president Lars Thykier said: “This
work has been rushed. There is a serious risk that the text will not favour a level playing field and will increase market fragmentation.” The European hospitality association
Hotrec said: “The text is simply not workable. The compromise proposed would transform into packages many hotel services currently not considered as such. “It would indirectly and unintentionally
prohibit many promotional offers for early and late standalone hotel bookings.”
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