New laws to protect 10m who book holidays online

HOLIDAYMAKERS who book package deals online will receive the same protection as those booking with a high street travel agent, under proposals by the Government.

Travel websites will have to pay compensation and issue refunds if holidays go wrong under the new consumer protection regulations – even if the hotels, flights or hire cars are provided by other companies.

The plans will ‘ensure the business that puts the package together is responsible for the entire holiday – even if some elements will be fulfilled by third parties’. Current rules entitle holiday- makers who buy a traditional package deal to a refund or repatriation should their travel company go out of business.

Travellers also benefit from additional legal protection should there be a problem with their holiday. But there is a ‘loophole’ for online-booking websites which enable holidaymakers to build their own personalised trip including hotels and flights. Currently, these sites claim to be offering a service to the consumer rather than acting as a travel agent for the different companies involved.

This means that they are not liable if an element of a holiday goes wrong or a company providing a service as part of the holiday goes bust. The new regulations will bring these sites under the definition of travel agents – meaning they will be liable for all aspects.

The UK’s largest travel agent ABTA estimates that some 50 per cent of holiday arrangements are not currently financially protected if a company ceases trading. Min- isters said that the new regulations will better protect an extra 10million – or 22 per cent of – UK package holidays booked online.

Households spend on average £23.10 per week on package holidays, which is 34 per cent of total spending on recreation and culture, according to Office for National Statistics figures.

The Package Travel Regulations, due to be introduced in July 2018, will also require travel agents to spell out consumers’ rights when they book. The plans were outlined in the Queen’s Speech this year.

Margot James, the consumer minister, said they ‘will ensure that an extra 22 per cent of holidays can be booked online with holidaymakers safe in the knowledge that they will get their hardearned money back if something does go wrong’.

A consultation on the plans will take six weeks.