ECTAA: Package Travel Directive Rules Must Apply to All Players

Photo source: European Commission / © Synthex/Adobe Stock

The European Travel Agents’ and Tour Operators’ Association (ECTAA) is calling on the European Commission to extend rules that strengthen travelers rights across the travel chain, claiming that the current Package Travel Directive (PTD) is still mostly focused on tour operators.

The association said there was “lack of ambition” on behalf of the Commission to impose equal obligations on all players in the travel value chain.

Representing some 80,000 travel agents and tour operators in Europe, ECTAA said it welcomed the intention of the Commission to address passenger rights and package travel in parallel. In this direction, ECTAA has called for a harmonized approach to the rights of passengers and package travelers in order to address the shortcomings witnessed during the Covid-19 pandemic but also to rebalance liabilities across the travel value chain.

Rules must apply to all players

Photo source: European Commission

However, the association goes on to add, that after more than two years of discussions, the Commission appears to be proposing more stringent rules for tour operators without similar rules for other players.

“These developments are worrisome. The pandemic could have been a good opportunity to balance the rights and obligations in the travel value chain and ensure a better protection of travelers. But the Commission seems to be short of ambitions. By focusing on travel intermediaries, it is choosing for the easy way and missing the target,” said ECTAA President Frank Oostdam.

ECTAA: Are airlines untouchable?

According to ECTAA, European Commissioner Didier Reynders is expected to announce a limitation of prepayment by consumers to 20 percent of the package price. However, there has been no similar limitation for airlines.

“The Commission is turning a blind eye on the main source of consumers’ prejudice during the pandemic. While traveler’s complaints peaked during the pandemic, that was mostly targeting airlines. Complaints about standalone flights were four times higher in 2020 and 10 times higher in 2021,” said Oostdam.

Additionally, he said, customers’ payments are protected in case of package travel but there is no equivalent protection for customers and tour operators when an airline, which has already collected the full amount of ticket price upfront, goes bankrupt.

He goes on to add referring to passenger rights that the Commission is expected to make travel intermediaries liable to refund travelers in case of a cancelled flight before receiving refunds from the airlines, putting additional financial pressure on these businesses. “By doing so, small intermediaries would essentially be acting as interest-free banks for the large airlines,” he said.

The PTD is considered to be the most protective travel legislation, putting the full responsibility of the trip on tour operators and securing travelers’ payments in case of the tour operators’ insolvency. This protection is still not applicable in cases other parts of the travel ecosystem, such as air transport.