THE EUROPEAN COMMISSION’S PROPOSAL FOR A NEW DIRECTIVE ON PACKAGE TRAVEL AND ASSISTED TRAVEL ARRANGEMENTS Government Response to the Call for Evidence SEPTEMBER 2014 EC Proposal for a New Directive on Package Travel and Assisted Travel Arrangements: Response to Call for Evidence THE EUROPEAN COMMISSION’S PROPOSAL FOR A NEW DIRECTIVE ON PACKAGE TRAVEL AND ASSISTED TRAVEL ARRANGEMENTS: The Government’s Response to the Call for Evidence CONTENTS INTRODUCTION ................................................................................................................. 3 EXECUTIVE SUMMARY ..................................................................................................... 4 About the Call for Evidence .......................................................................................... 4 Summary of the Responses to the Call for Evidence.................................................... 6 The Air Travel Organisers’ Licensing (ATOL) System .................................................. 8 The Government’s Response ....................................................................................... 8 NEXT STEPS .................................................................................................................... 13 RESPONSES TO QUESTIONS ........................................................................................ 14 Chapter 1 - Scope .............................................................................................................. 14 Article 2.1 .................................................................................................................... 14 Article 2.2 .................................................................................................................... 15 Article 3 – Definitions .................................................................................................. 31 Chapter 2 – Information obligations and content of the package travel contract ................ 57 Article 4 - Pre-contractual information ......................................................................... 57 Article 5 – Binding character of the pre-contractual information and conclusion of the contract. ...................................................................................................................... 65 Article 6 - contents of a package contract and documents to be provided before travel. .................................................................................................................................... 67 Chapter 3 – Changes to the contract before the start of a package. .................................. 70 Article 7 – transfer of the contract to another traveller. ............................................... 70 Article 8 – Alteration of the price ................................................................................. 72 Article 9 – Alteration of other contract terms ............................................................... 75 Article 10 - Termination of the contract before the start of the package. ..................... 77 Chapter 4 – Performance of the package .......................................................................... 82 Article 11 – Liability for the performance of the package. ........................................... 82 1 EC Proposal for a New Directive on Package Travel and Assisted Travel Arrangements: Response to Call for Evidence Article 12 – Price reduction and compensation for damages ...................................... 89 Article 13 – Possibility to contact the organiser via the retailer. .................................. 94 Article 14 – Obligation to provide assistance .............................................................. 95 Chapter 5 – Insolvency Protection ..................................................................................... 98 Article 15 – Effectiveness and scope of insolvency protection .................................... 98 Article 16 Mutual recognition of insolvency protection and administrative cooperation. .................................................................................................................................. 116 Chapter 6 – Assisted Travel Arrangements ..................................................................... 120 Article 17 – Information requirements for assisted travel arrangements. .................. 120 Chapter 7 - General provisions ........................................................................................ 125 Article 18 – Particular obligations of the retailer where the organiser is established outside of the EEA. ................................................................................................... 125 Article 19 – Liability for booking errors. ..................................................................... 130 Article 25 – Amendment of Regulation (EC) No 2006/2004 and Directive 2001/83/EU .................................................................................................................................. 131 Impact Assessment ......................................................................................................... 132 Annex A .......................................................................................................................... 138 LIST OF RESPONDENTS ............................................................................................... 138 Consumer Representatives ............................................................................................. 138 Travel Trade .................................................................................................................... 138 Regulators ....................................................................................................................... 138 Others with Interests in the Travel Trade, e.g. Insurance Companies and Legal Firms ... 139 2 EC Proposal for a New Directive on Package Travel and Assisted Travel Arrangements: Response to Call for Evidence THE EUROPEAN COMMISSION’S PROPOSAL FOR A NEW DIRECTIVE ON PACKAGE TRAVEL AND ASSISTED TRAVEL ARRANGEMENTS: The Government’s Response to the Call for Evidence INTRODUCTION This is the Government’s response to the Call for Evidence on the European Commission’s Proposal for a New Directive on Package Travel and Assisted Travel Arrangements1 which was issued on 20 September 2013 by the Department for Business Innovation and Skills (BIS). The Call for Evidence closed on 29 November 2013. The Call for Evidence invited submissions and evidence to help inform the Government’s understanding of the expected impact of the Commission’s Proposal (the Proposal) and to inform the UK’s negotiating position as it engages with the other Member States and the Commission in the European Council Working Group, and with the European Parliament. The Department is extremely grateful to the 42 respondents for their written responses to the 43 questions posed in the Call for Evidence and thanks them for their engagement. 27 responses were from industry and tourism organisations including the main trade representative bodies in the UK and those representing the broader European trade. Two respondents represented consumers’ views; six responses were from enforcement authorities and regulators in the sector; and seven respondents were other organisations including legal firms, insurers and card payment organisations. Annex A lists the respondents. BIS officials have continued to engage directly with a range of stakeholders as the negotiations in the European Council and the consideration of the Proposal by the European Parliament has progressed. The responses included a broad range of views and information. This, together with our ongoing contact with stakeholders, has been of great assistance in enabling us to present well informed provisional positions on the various elements of the Proposal, and to engage fully in the negotiation process. 1 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/239934/bis-13-1153- european-directive-on-package-and-assisted-travel.pdf 3 EC Proposal for a New Directive on Package Travel and Assisted Travel Arrangements: Response to Call for Evidence EXECUTIVE SUMMARY The European Commission published a Proposal for a new Directive on Package Travel and Assisted Travel Arrangements in July 20132. It is intended that the new Directive will replace the current regime under Directive 90/314/EEC as implemented in the UK by the Package Travel, Package Holidays and Package Tours Regulations 1992 (SI 1992/3288 as amended) (the Package Travel Regulations) and the Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012 (the ATOL Regulations). Holding a licence under the ATOL Regulations is recognised as evidence that a business meets the insolvency protection requirement in the Package Travel Regulations3. The Proposal retains the essential shape of the current regime, covering the provision of information and the consequences of contractual failure, making the organiser liable for the performance of the package, including by third parties, and providing for consumer protection in the event of organiser insolvency. The Proposal is a consumer protection measure and is also directly relevant to the further development of the single market for leisure travel services. Consumer protection is not a devolved matter in Scotland or Wales, but is a devolved matter in Northern Ireland. The UK regulations which implement the current Directive