Package Travel

The Package Travel, Package Holiday and Package Tour Regulations 1992 implement the EC Directive on package tours, travel and holidays in UK law.

What is a package?

A package is defined as follows:

• it must cover a period of 24 hours, or involve overnight accommodation, and
• it must consist of a pre-arranged combination of at least two of these components:
  • Transport
  • Accommodation
  • other tourist service that forms a significant proportion of the package (e.g. excursions, entertainment), and
• it must be sold at an inclusive price.

Pre-arranged

Pre-arranged means that it is the combination of the elements, not the details of the elements themselves that are to be organised prior to completion of the contract.

In this way, 'tailor-made' combinations where, for instance, the customer selects the method of travel and the hotel, are covered by the Regulations. The combination, although selected to form an individual package, is nevertheless pre-arranged.

Other tourist services

If the provision of entertainment or sports facilities is restricted to those who have paid for them in advance in the cost of their holiday, and/or these services are a feature of the holiday, these services will fall within the category of 'other tourist services' defined by the Regulations.

This being the case, the tourist services will constitute one of the two or more components that define a 'package'. However, should an additional charge be payable for the use of the facilities during the holiday, so that their use is in effect optional, it is unlikely that they could be considered tourist services.

For example, if the use of the hotel swimming pool is available to all who stay there, it is not a feature unique to that holiday, but if swimming tuition is included in the price of the holiday, it alters the nature of the holiday, and is therefore a tourist service and a component of the package.

Accommodation

Accommodation that is not a feature of the holiday (for instance, the provision of a berth on a cross channel ferry) is unlikely to be considered a component of a package feature and therefore a component.

Responsibilities of organisers

The Regulations require package holiday organisers to:

• Take steps to protect customers' money.
• Ensure that brochures contain the required information.
• Provide customers with certain specified information.

Security of customers' money

The Regulations state that, if you are 'the other party' to a contract with a customer to provide them with a holiday that is classed as a package, you must provide evidence of the arrangements you have made to secure money to refund customers should you be unable to complete the contract. The 'other party' can be the organiser, the retailer or both.

An organiser is defined as the person who 'otherwise than occasionally' organises packages and sells them, either through a retailer or himself.

The term 'occasionally' is not defined by the regulations, but it must be considered that if a package is arranged on a regular basis, even if not frequently, security arrangements should be made.

A retailer is the person who sells packages put together by the organiser.

The regulations apply to packages sold in the U.K., regardless of whether the company either organising or selling the holidays is based in the U.K.

Brochure requirements

Any brochures that you produce or make available to consumers must contain the following information:

• Destination of the holiday.
• The type of transport to be used and its characteristics e.g. scheduled flight.
• The type of accommodation: its location, degree of comfort and tourist class.
• The meals available in the package.
• The holiday itinerary.
• Any passport, visa or health requirements.
• The deposit requirements and any timetable for payments.
• Any minimum party sizes. Any arrangements for late departure.
• The security/repatriation arrangements in the event of insolvency.

Information to be given to the customer

Before the holiday contract is completed the customer must be given the following information (either verbally, in writing or in any other form):

• Passport/Visa requirements.
• Health requirements for the country being visited.
• The security/repatriation arrangements in the event of insolvency.

Before the customer goes on holiday you must also provide the following information:

• Details about the holiday itinerary.
• Transport connections.
• Times and places.
• The name and address of a company representative or an appropriate contact for them to use whilst they are on holiday.

You must provide the customer with a written copy of the terms of the contract for the holiday.

Prices

Unless the contract specifically allows for the revision of prices (and indicates how any revised price is to be calculated) you cannot change the price laid down in the contract.

Price changes can only be made to allow for variation in:

• Transportation costs.
• Duties, taxes and fees.
• The exchange rate applicable to that package.

If the price increase is less than 2% of the package cost, the operator must absorb the price. If it exceeds 2% the operator must absorb the first 2%.

You cannot pass on any price increase in the period of 30 days before departure. Further guidance on the regulations can be found at www.dti.gov.uk/ccp/topics1/guide/packtravel.htm

Please Note

This leaflet is not an authoritative interpretation of the law and is intended only for guidance. For further information please contact your local Consumer Protection or Trading Standards office.

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