Tourism Industry Calls on EU to Revisit Package Travel Directive Changes

Photo source: European Parliament

Travel and tourism services providers across the European Union are calling on the European Parliament and Council to reexamine proposed amendments to the Package Travel Directive (PTD) adopted last year, arguing that the new changes may “destabilize the delicate balance of the European tourism ecosystem”.

According to a joint statement issued by CLIA, HOTREC, ETOA, the European Travel Agents’ and Tour Operators’ Association (ECTAA) and a coalition of travel and tourism services providers, the revised directive may end up harming travelers instead of benefiting them.

“It is critical to ensure that any new regulations not only enhance consumer protection but also support the growth and sustainability of the tourism sector, which plays a crucial role in the economic prosperity of Europe,” the letter reads.

Photo source: eca.europa.eu

The associations go on to identify two key areas of concern: the revised definition of “package”, which they claim, could create confusion among package organizers, service providers, and consumers about the nature of the products and services being sold.

The expanded definition, stakeholders argue, implies the separate purchase of single travel services as a “package” when such purchases are made within a certain timeframe. This would come with higher costs for consumers, less flexibility, and extensive tracking of their activities online, they claim.

Secondly, the proposal limits pre-payments for travel packages to no more than 25 percent of the total price. This provision, they add, fails to take into account the dynamics of the sector where pre-payments are essential for the viability of many businesses and places additional pressure on organizers.

Photo source: European Parliament

In their letter, the industry bodies acknowledge the need to revise the PTD in response to the challenges travelers faced during the Covid-19 pandemic, such as delays in reimbursements, but they go on to add that current proposals could now destabilize the delicate balance of the European tourism ecosystem.

They go on to urge the European Parliament and the Council to revisit and amend these provisions and to engage with all tourist stakeholders to discuss the proposed changes and explore viable solutions that protect and promote the sector’s competitiveness and viability.