PACKAGE TRAVEL : OPTIONS FOR BOOSTING PROTECTION OF HOLIDAY MAKERS.

The consequences of the cloud of volcanic ash on holiday makers and service providers brought back to centre-stage the need to clarify the question of liability. Directive 90/314/EEC on package travel, package holidays and package tours does not make a distinction between the organiser and the retailer in terms of liability. Nor does it cover situations that did not exist (or were relatively rare) at the time of its adoption, in 1990. Indeed, consumers who put together their own package in just a few clicks on sites like Opodo, Expedia or TripAdvisor are not protected by this directive.

The results of a public consultation on revision of this directive show that views differ on the different aspects to be regulated and on how to do so. The European Commission sponsored a workshop, on 22 April, to present its different proposals.

EIGHT APPROACHES

After studying the 161 responses to its public consultation, which closed on 7 February, the Commission identified eight options.

1. The status quo - maintaining the directive in its present form. Infringement proceedings could be launched against member states not applying the directive correctly or failing to transpose it correctly into national law.

2. Maintaining the directive in its present form and preparing guidelines on the scope and liabilities of organisers and retailers and the role of the Court of Justice.

3. Introduction of a European logo that helps consumers to identify whether the package falls under the scope of the directive; its introduction would be matched with information campaigns.

4. Repeal of Directive 90/314/EEC and self-regulation by the industry.

5. A minimum legislative approach: the basic legal structure of the existing directive would be kept but the text would be adapted. In concrete terms, the revision would involve coverage of dynamic packages, ie put together by consumers themselves from a single site, and would clarify professionals' obligations (information and assistance). It would also involve an update of information requirements and special requirements for pre-contractual information. Price revision after conclusion of the contract would be limited to 10% under specific conditions.

6. A medium legislative approach: adaptation of the directive would include packages assembled through the internet from two or more websites ( click-through sales').

7. A maximum legislative approach would include protection against insolvency.

8. A maximum plus' approach: the consumer would be protected for all travel arrangements.

For the European Travel Agents and Tour Operators' Association (ECTAA), consumers obviously have to be protected, but the sector's competitiveness also has to be safeguarded and greater protection comes at a cost. ECTAA prefers certain policy principles - eg only private consumers should be covered - to the different options presented. The travel association ABTA, which represents travel agencies and tour operators, backs the medium legislative approach involving extension of the directive's scope (to combined holidays, for instance) and coverage of click-through sales.

At the EP plenary, on 8 March, Consumer Affairs Commissioner John Dalli promised to present legislative proposals by the end of 2010 or early in 2011.