Package Travel Regulations Government Response & TA Position

Government has now published its response to the “Package travel – updating the framework” consultation. Our submission can be found here. This note gives you the short version; a fuller 4-page TA briefing is available here

Headline:

• Government has rejected calls to exempt domestic-only packages without travel from the Package Travel Regulations.
• It has simplified Linked Travel Arrangements (LTAs) and strengthened organisers’ right to redress from suppliers, both in line with key points we raised.
• Our economic evidence on the growth potential of domestic product is explicitly cited in the response.

Key changes you need to know about

• LTAs:
  • “Type A” LTAs (multiple services booked in a single online journey with separate payments) will be treated as full packages.
  • “Type B” LTAs (follow-on, targeted offers within 24 hours) will be abolished, reducing the risk for SMEs who simply signpost local services.
• Redress from suppliers (Regulation 29):
  • New 14-day deadline for suppliers to refund organisers where services are cancelled.
  • The law will confirm that organisers have a right to redress, not just a right to “seek” it.
• What is not changing now:
  • No domestic-only exemption from the regime.
  • No immediate change to insolvency protection rules or ATOL / PTR duplication.
  • No legislative change on “other tourist services”, but Government will consider updating guidance.

TA view and next steps

• We are disappointed that the domestic exemption was not taken forward, despite Government quoting our estimate that a lighter regime could support billions in additional domestic spend and tens of thousands of jobs.
• We welcome the simplification of LTAs.
• We will now:
  • Work with officials and regulators on implementation and guidance, with a focus on clarity and proportionality for SMEs.
  • Refresh our evidence base on the domestic growth opportunity, to keep this on the table for future reform.