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Written question asked by Ed Davey (Liberal Democrat) on Wednesday, 12 April 2006, in the House of Commons. It was due for an answer on Tuesday, 18 April 2006. It was answered by Gerry Sutcliffe (Labour) on Monday, 24 April 2006 on behalf of the Department of Trade and Industry.

Consumer Protection (Holidays)

Question
To ask the Secretary of State for Trade and Industry what steps he has taken to ensure that British holidaymakers are able to seek some form of financial redress in appropriate instances where travellers are not undertaking a traditional package holiday; and if he will make a statement on the responsibilities of travel operators providing non-package holidays to ensure that compensation is made available for customers in the event of problems with that provision.
Answer

The Package Travel, Package Holidays and Package Tours Regulations 1992 (SI 1992/3288) place certain liabilities on businesses which fall within the regime for the proper performance of the contract, and requires them to provide sufficient evidence of security for the refund of money and repatriation in the event of insolvency. The regulations apply to businesses which organise, or sell, or offer to sell, at an inclusive price a pre-arranged combination of at least two of the following elements: travel; accommodation; and, other tourist services.The regulations implement the Package Travel Directive (90/314/EEC) which is one of eight consumer facing directives currently undergoing review by the European Commission. We have not yet received any proposals for change to this directive from the Commission.Holidaymakers who choose to make their own arrangements for travel and accommodation as separate items do not benefit from the provisions of the regulations, as there is no third party putting together a package of arrangements for them. However, those individual businesses with whom the holidaymaker contracts for services are obliged to meet their contractual obligations to the holidaymaker in the normal manner.The Air Travel Organisers Licence (ATOL) scheme provides financial protection for package holiday travellers, including protection against airline bankruptcy. ATOL does not cover independently booked flights. For these flights, several airlines have agreed voluntary repatriation measures to ensure that stranded passengers are returned home at moderate cost. As regards refunds, several airlines now offer insurance against insolvency, and include notices on their websites highlighting the benefits of such insurance. The Government have also recently stressed the need for travellers to take out insurance against a range of misfortunes or expenses which can occur abroad.

Secondary information

Type
Written question
Reference
64395; 445 c824-5W;445 c824-5W
Session
2005-06
Subjects
Compensation Consumers Holidays Protection
Link
View this Written question on www.publications.parliament.uk