LEGAL IAN SKUSE
The march of the regulators
Be aware that new rules on many aspects of business travel are coming into effect this year
in business travel. GDPR is now only weeks away, and many companies appear to be just waking up to the need to have good compliance procedures in place. Other regulations to watch for include the new Privacy Directive, the new Package Travel Directive, and amended ATOL Regulations expected imminently. TMCs and corporates will need to tread carefully to ensure they do not inadvertently break the rules, or have an unexpected outcome from their bookings and transactions.
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ANTI-COMPETITION LAW INVESTIGATIONS Hotel booking websites are facing an investigation by the Competition and Markets Authority (CMA) following concerns about the clarity, accuracy and presentation of information. The suggestion is that search results might be prioritised by commissions paid, hotels paying extra for more “visibility” and “pressure selling” where the site suggests others are looking at the same hotel, or a shortage of rooms. The CMA says customers might rush into making a booking based on incorrect information. The CMA investigation is looking at levels of discount and hidden charges, and whether these are included in the headline price. It is also scrutinising “most favoured nation clauses” under which traders require prices to be lower than competitors.
BUYINGBUSINESSTRAVEL.COM
EW REGULATIONS THIS YEAR will require high compliance costs by those engaged
In the US, six major hotel chains face a class action based on the allegation that they entered into an illegal agreement to reduce competition by using “branded key words” narrowing the range of prices by having fewer competitors.
Ian Skuse is a partner in Blake Morgan’s Aviation team (blakemorgan.
co.uk) and is based in the London office. Ian was a partner with Piper Smith Watton LLP, which merged with Blake Morgan LLP in 2015
SUCCESS IN THE SKIES The Court of Appeal will be the new battleground for defending flight delay claims where the cause of the delay is weather and Air Traffic Control. Airlines have also succeeded in blocking an attempt by claims management companies and solicitors to prohibit a direct approach to customers who have signed up with a “no win-no fee” arrangement. The High Court ruled that the airline was permitted to communicate directly with passengers who had made a claim through a solicitor and was not obliged to pay compensation directly to the solicitor rather than the passenger. There was no entitlement for the airline to indemnify a solicitor for fees when the airline settled directly with the passenger. Ryanair announced: “This will help prevent claims chaser firms… deliberately and needlessly dragging consumers through the courts so they can grab more than 40 per cent of customer’s compensation, for providing no useful service.”
WHEN IS A PACKAGE NOT A PACKAGE? Due to last-minute consultations with stakeholders in the package holiday market, various new parts of the new Package Travel
Regulations have yet to be clarified. One problem has been the definition of “linked travel arrangements” (LTAs). These apply when one travel provider offers an online link to another supplier in a “targeted” way resulting in the consumer purchasing services from two suppliers. When one of these LTAs is
created, the directive requires the travel company facilitating that LTA to tell the traveller that they will not benefit from rights applying to packages and that each service provider will be solely responsible for the performance of their services. A purchaser of an LTA also has limited rights from insolvency protection, and only the first supplier is obliged to have such protection.
Further clarity will be required on this issue, particularly for airlines offering a link on a website to book other travel services.
AIRLINE INSOLVENCY Following the insolvent collapse of Monarch Airlines back in October 2017, the government has announced an independent review into protection for passengers impacted by the failure of an airline. The Department for Transport has announced a review and an interim report by the summer. Currently, airlines are not required to have insolvency protection.
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