The Daily Telegraph - Saturday - Travel
What the EU can teach us about protecting our trips
Europe is on a mission to improve legal rights for travellers. The UK government should take note, says Nick Trend
One of the side-effects of Brexit is not only that current laws deriving from EU legislation may be ditched, but that future improvements in consumer protection which might come about as the EU reviews its directives no longer automatically apply to us.
The practical effects of this divergence are about to be highlighted for travellers, as both the EU and the UK government reconsider consumer protection arrangements for holidays in the light of what happened during the pandemic and, rather later in the day, the collapse of Thomas Cook in 2019. The EU has just published its proposals, while the deadline for submissions to our own UK review of the original EU legislation on package holidays passed this week.
It is clear from the proposals it has adopted that the EU is on a mission to improve protections even further with travellers at the forefront of its proposals. However, the mood music from the Government here does not feel so consumer-friendly – if, that is, I am reading the tone of this statement issued by the Department for Business and Trade correctly: “We are particularly aiming to look at whether the regulations strike the right balance between consumer protections and business freedoms.”
When it comes to package holidays, the EU’s latest proposals focus on the areas outlined below. I have given my verdict on each. Let’s hope, in its own review, the UK government learns from this approach and doesn’t put the interests of shareholders above those of holidaymakers.
TIMELY REFUNDS
The current right to a refund within 14 days of a package operator cancelling a holiday was widely ignored by travel companies during the pandemic, with many saying it was an impossible deadline because they were struggling to get the money back from airlines. The EU is proposing new rules so that refunds must be made by providers (eg airlines) to operators within seven days, so consumers can receive theirs faster.
Verdict A no-brainer and a sensible lesson learned from the pandemic.
LATER PAYMENTS
The EU proposes that deposits for package holidays should not be higher than 25 per cent of the total. Tour operators will also be unable to ask for the full balance of the holiday cost earlier than 28 days before the departure date.
Verdict This time limit is much later and much more satisfactory than typical UK booking conditions. In this country we usually have to pay the full cost of the holiday eight to 10 weeks ahead of departure. Shortening that can only be a good thing for consumers.
PROTECTED VOUCHERS
During the pandemic, the issuing of vouchers for cancelled holidays was a key way that many businesses managed to stay afloat. But it only worked in the UK because provisions were put in place by the bonding authority, Atol, to guarantee those vouchers. The EU’s proposals would greatly simplify things so that vouchers must be refunded automatically if not used before the end of their validity period. And all vouchers and refunds would be covered by insolvency protection rules.
Verdict These proposals seem like an obvious and sensible rationalisation which we would do well to mirror.
CLEARER PACKAGE INFORMATION The rules around what constitutes a package holiday have always been complicated for punters to understand. But it is important, as packages must be financially guaranteed by law, so if the company goes out of business, you’ll get a full refund. The EU is proposing rules to make it clearer at the point of purchase which arrangements are covered.
Verdict The EU proposal feels a bit vague. I would look at it the other way and make it a legal requirement for a company selling travel arrangements to tell you when there is no financial protection in place.