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Consumer and Competition Policy Directorate

FACTSHEET and Frequently Asked Questions (FAQs)

Subject:  Package Travel

Relevant or Related Legislation

Consumer protection is offered under The Package Travel, Package Holidays and Package Tours Regulations 1992. You may view the regulations on-line by clicking the following link: http://www.legislation.hmso.gov.uk/si/si1992/Uksi_19923288_en_1.htm

Key Facts

What makes a package holiday? The definition of a package holiday is complex, but a package holiday must:

• be sold or offered for sale

• be sold at an inclusive price

• be pre-arranged

• include a minimum of two of the three elements of:

° Transport

° Accommodation

° Other tourist services (not ancillary to transport or accommodation) accounting for a significant proportion of the package, such as a tour guide.

In the UK, anyone who offers for sale (other than occasionally) package holidays must comply with the Package Travel Regulations 1992. These set out travel organisers' responsibilities to their customers and remedies available to them should there occur a breach of the regulations.

The regulations provide consumers with statutory legal rights against tour operators by making clear to operators that they have legal responsibilities to their customers. The Regulations also enable dissatisfied holidaymakers to pursue their case with a single supplier, the travel organiser, instead of with individual suppliers such as airlines or hoteliers.

Where a tour operator has failed to honour its contractual obligations to a customer, it may be liable to pay compensation.

Frequently Asked Questions (FAQs)

Q1. What should I do if I am unhappy with my holiday?

Q2. What are my rights if a tour operator is not covered by ABTA/ATOL?

Q3. Is there anywhere locally I can seek advice on how to pursue a complaint about a holiday?

Q4. Do I really need travel insurance if I go on holiday?

Q5. Am I compelled to buy the insurance policy that the travel agent offers me?

Q6. If I do shop around, will any High Street insurance suit my needs?

Q7. Some holidays are offered with free travel insurance. Surely I would get a better deal if I were to buy a package with this sort of offer.

Q8. I have a medical condition but am afraid that if I tell the travel agent I will have to pay very high insurance premium. Should I keep quiet about it?

Q9. My holiday did not match the description in the brochure - what can I do about this?

Q10. My flight was altered at the last minute. What are my rights?

Q11. I had to pay a costly flight supplement because I flew from my local airport (e.g. Manchester Birmingham). I know of someone who flew from Gatwick and paid no such supplement. This does not seem fair.

Q12. Why should I have to pay a single person supplement?

Q13. Why is my child being charged adult prices for our holiday?

Q14. Can a tour operator change the price of the holiday after booking?

Q15. What happens if you cannot go on a holiday that you have booked?

Q16. I was taken ill during a holiday abroad. Can I sue the tour operator?

Q17. Why are cancellation charges so high?

Q18. Where do I go for help in setting up my own Travel Business?


Q1. What should I do if I am unhappy with my holiday?

In the first instance, you should let the resort representative know of your concerns. Alternatively, on your return home you should address your complaint direct to whomever you bought the holiday from. This will usually be a tour operator rather than the travel agent where you booked your holiday.

If you can still not resolve the problem, and the travel organisation is a member of a Trade Association, such as the Association of British Travel Agents (ABTA), you should consider seeking the assistance of the Trade Association to resolve the dispute.

Q2. What are my rights if a tour operator is not covered by ABTA/ATOL?

You still have the same rights regardless of whether a tour operator is a member of a Trade Association, such as ABTA, or has an Air Travel Organisers Licence (ATOL). If a tour operator is an ABTA member you can choose whether to pursue a case via the ABTA independent arbitration scheme, instead of through the small claims court.

Q3. Is there anywhere locally I can seek advice on how to pursue a complaint about a holiday?

Yes, Trading Standards Departments, which are located within local councils, are responsible for enforcing the Regulations. Most of them also have advice centres, which should be able to offer practical advice on individual cases. Another source of advice is your local Citizen's Advice Bureau (CAB).

Q4. Do I really need travel insurance if I go on holiday?

The Department's advice would be always to take out insurance appropriate to your needs before you travel. For example, if you are taking a ski holiday, or going scuba diving, make sure the policy of your choice covers the risks associated with sports such as these.

Q5. Am I compelled to buy the insurance policy that the travel agent offers me?

A travel agent or tour operator can only insist that you take out their insurance as part of their package holiday if this is inclusive in the terms and condition of the contract. If no insurance element is inclusive in the contract then the consumer has the right to seek independent insurance cover.

However, there is no legal requirement that the consumer takes out insurance cover although we would strongly advise that he/she does so and to shop around for the insurance best suited to his/her needs.

Q6. If I do shop around, will any High Street insurance suit my needs?

There are plenty of reputable retailers from whom you can buy travel insurance but, when selecting an alternative policy, take care that it will meet all of your needs. Some credit card companies, for example, sell insurance which is not comprehensive.

Q7. Some holidays are offered with free travel insurance. Surely I would get a better deal if I were to buy a package with this sort of offer.

It is worth bearing in mind that while some operators offer genuinely free insurance, in some cases its cost may have been included in the overall package price. Ultimately, it is a matter of individual choice and will depend on how important "free" insurance is to you or whether getting the holiday you really want, of the right quality, is more important.

Q8. I have a medical condition but am afraid that if I tell the travel agent I will have to pay very high insurance premium. Should I keep quiet about it?

No. You should never conceal a pre-existing medical condition when buying an insurance policy. Not to do so could render a subsequent claim on the policy invalid. In all cases, always check the wording of the policy carefully.

Q9. My holiday did not match the description in the brochure - what can I do about this?

A tour operator does not have to provide a brochure. However, where he does so, the Package Travel Regulations require that it must contain accurate information in relation to certain specified matters, including the type of accommodation on offer and its location. If you think you have been misled by material in a brochure, you should report it to your local Trading Standards Department who will investigate as appropriate.

The regulations also prohibit travel agents from knowingly supplying to consumers brochures containing misleading information.

Q10. My flight was altered at the last minute. What are my rights?

Such a significant alteration to a holiday itinerary should be made known to you as soon as possible. If a tour operator has not done so he may be liable to compensate you - but each case will depend on its individual circumstances. If in doubt, seek advice from your local Trading Standards Department.

Q11. I had to pay a costly flight supplement because I flew from my local airport (e.g. Manchester Birmingham). I know of someone who flew from Gatwick and paid no such supplement. This does not seem fair.

Following an investigation into the complaints about the cost of flight supplements for package holidays from Scottish and local airports, the OFT has concluded that there are no grounds for further action under competition law. The report does, however, call on tour operators to provide a clearer explanation of their charges to consumers.

Q12. Why should I have to pay a single person supplement?

The travel industry argues that there are sound economic reasons for charging them. It is worth pressing tour operators to explain and justify these charges if you object to them, since such pressure may help to produce market solutions to the problem. Not all travel companies impose such charges and if you are prepared to shop around you may be able to find operators who do not charge single supplements.

Q13. Why is my child being charged adult prices for our holiday?

I am afraid that a child paying adult prices is a matter for the commercial policy of individual business and an area we are unable to offer any advice or assistance in.

Q14. Can a tour operator change the price of the holiday after booking?

The price can only be changed where the original contract provided for upward and downward revisions and where it stated how these revised prices would be calculated.

These changes can only be made to allow for variations in transportation costs, taxes and fees for services such as airport taxes, and exchange rates. Where the price increase is less than 2% of the original cost, the travel organiser must absorb it, and if it is more than 2%, the organiser must absorb the first 2%. No price increase can be passed on less than 30 days prior to departure.

Q15. What happens if you cannot go on a holiday that you have booked?

If you are unable to proceed with your holiday, you may transfer your booking to another person as long as the other person satisfies all the conditions applicable to the package. In this case the travel organiser must be given reasonable notice of the intention to transfer the booking. The person who has transferred the booking and the person to whom it has been transferred must assume joint responsibility for the payment of the cost of the holiday.

Q16. I was taken ill during a holiday abroad. Can I sue the tour operator?

It would depend upon the circumstances. Tour operators have a general responsibility for their customers' welfare, but within reason. They could not be held responsible, for example, for circumstances beyond their control such as unhygienic food handling practices in a foreign country unless they formed part of the package holiday (e.g. the problem is sourced to catering facilities at the hotel complex at which you were staying).

Q17. Why are cancellation charges so high?

The setting of such charges is primarily a matter for the commercial judgement of individual tour operators. The Office of Fair Trading (OFT) is concerned that some tour operators' cancellation charges may be excessive and has asked the operators concerned to justify them. OFT enquiries are as yet at an exploratory stage.

Q18. Where do I go for help in setting up my own Travel Business?

A good starting point for advice in setting up any new business is your local Business Link. If you need advice on whether you are abiding by the Package Travel Regulations then you should contact your local Trading Standards Department. Please note that the DTI is unable to offer any individual or legal advice in starting up your own business.

Contacts

Local Citizens Advice Bureau http://www.nacab.org.uk who can give you legal advice about your rights under the current law.

Local Trading Standards Departments http://www.tradingstandards.gov.uk who are responsible for enforcing the law.

You can find the local address and telephone number for these under the respective websites after entering you postcode.

The Association of British Travel Agents Ltd (ABTA)
68-71 Newman Street
London
W1P 4AH
Tel: 020 7637 2444

Web site: www.abta.com/

DTI's Consumer Gateway Website http://www.consumer.gov.uk offers links to sites with information and advice to consumers on a wide range of issues.

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Last updated 05 June 2003


Department of Trade and Industry

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