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BackThe new Directive proposal on package travel and assisted travel arrangements presented by the Commission in the European Parliament has long been overdue. Many consumers book their holidays online. The existing Directive on package travel originates from 1990, a time, when it was still general practice to choose a holiday from the brochure and to book it at the travel agent. However, many consumers have been booking their holidays on the Internet for many years, a medium, which the existing Directive does not take into account. The Commission now wants to rectify the situation, however, not without causing resentment with consumer protection organisations.
When introducing the new Directive proposal in the European Parliament, the Commission explained that booking traditional packages was sharply in decline. According to a survey ordered by the Commission, about 54 percent of consumers put together their journey individually; only 23 % opt for package travel arrangements. However, there was also a trend towards combining various elements of a journey or holiday, such as flight, accommodation and hire car on an internet platform. Due to the wide range of options to organise a journey, many holiday bookings do not come under the existing Directive. The Commission is in favour of a higher level of consumer protection. However, the competent EU official emphasised that the situation for companies was also in need of improvement. Some rules, such as the obligation to provide brochures as hard copies, were outdated, because many journeys or holidays were booked online. Business travellers shall no longer come under the scope of the Directive. The fact that different rules on package travel existed in the Member States would mean that travel companies would incur additional costs. According to the Commission, the new proposal shall take both the requirements of consumers as well as of operators into account.
Rights of withdrawal are missing, deterioration concerning warranty issues
However, consumer organisations are far from being impressed with the Directive proposal. Even though the Chamber of Labour establishes that internet portals will have to carry a greater responsibility in future, there is a complete lack of rights of withdrawal when booking a package holiday online. The planned full harmonisation carries the risk of a blatant deterioration compared to the Austrian level of consumer protection, for example in respect of price reductions, subsequent changes in performance by the operator or warranty issues. However, extending insolvency protection for consumers to travel agents organising assisted travel arrangements has to be seen as a step in the right direction.
MEP Mayer: focus on providing agreed services
The rapporteur of the European Parliament, MEP Hans-Peter Mayer of the European People’s Party, welcomed the proposal. If the issue was to avoid unnecessary costs, he would completely agree with the Commission. However, the main point for him was to ensure that all services agreed would actually be provided. For example, he would not be bullied by airlines, which threaten to cancel flights if they don’t get what they want – as happened within the scope of negotiations on air passenger rights, said Mayer.
A hearing on package travel has now been scheduled for 5 November. MEP Mayer hopes that the first reading will be complete in March 2014.
Further Information:
AK EUROPA Position on Package travel and assisted travel arrangements
Rights of withdrawal are missing, deterioration concerning warranty issues
However, consumer organisations are far from being impressed with the Directive proposal. Even though the Chamber of Labour establishes that internet portals will have to carry a greater responsibility in future, there is a complete lack of rights of withdrawal when booking a package holiday online. The planned full harmonisation carries the risk of a blatant deterioration compared to the Austrian level of consumer protection, for example in respect of price reductions, subsequent changes in performance by the operator or warranty issues. However, extending insolvency protection for consumers to travel agents organising assisted travel arrangements has to be seen as a step in the right direction.
MEP Mayer: focus on providing agreed services
The rapporteur of the European Parliament, MEP Hans-Peter Mayer of the European People’s Party, welcomed the proposal. If the issue was to avoid unnecessary costs, he would completely agree with the Commission. However, the main point for him was to ensure that all services agreed would actually be provided. For example, he would not be bullied by airlines, which threaten to cancel flights if they don’t get what they want – as happened within the scope of negotiations on air passenger rights, said Mayer.
A hearing on package travel has now been scheduled for 5 November. MEP Mayer hopes that the first reading will be complete in March 2014.
Further Information:
AK EUROPA Position on Package travel and assisted travel arrangements