BUSINESS NEWS


EC unveils shake-up of Package Travel Directive


Airlines have to refund package organisers in event of a cancellation. By Ian Taylor The EC proposes to enshrine the


The European Commission unveiled significant revisions to the Package Travel Directive and additions to passengers’ rights last week, including a requirement for airlines to refund package organisers in the event of a cancellation. The changes will not apply in the UK but companies selling across Europe will need to comply, and the new rules will inform the decisions the Department for Business and Trade make on reform of the Package Travel Regulations.


56 7 DECEMBER 2023


right of package organisers to a refund from service providers within seven days. It noted “the lack of liquidity organisers faced” during the pandemic and argued: “Since organisers use downpayments from travellers to pay in advance for certain services included in a package, they depend on refunds from service providers to be able to reimburse travellers if the package is cancelled.” At the same time, in a move


that may concern many package organisers, the EC proposes to limit


downpayments by customers to 25% of a package price, with the balance payable no earlier than 28 days before the start of the holiday. However, the EC will allow a


higher prepayment “when organisers face costs justifying a higher downpayment, for example, because they have to pay the full ticket price to the airline upfront”. The EC has sought to clarify the rules on Linked Travel Arrangements


Continued on page 54 travelweekly.co.uk


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