Brussels, 09/07/2013 (Agence Europe) - Now 13 years old, the EU legislation that protects the rights of consumers buying package holidays (pre-arranged travel formulas) is out of date because it no longer corresponds to the reality of the travel market in the 21st century - a market that has been through profound changes with the arrival of the internet. The European Commission therefore put forward a proposal on Tuesday 9 July to rejuvenate this legislation (Directive 90/314/EEC) - to adapt it to the digital age, to protect consumers better, and to give package travel operators some legal clarity while reducing their burden of red tape. The draft directive on this, which was adopted by the college of commissioners on Tuesday, is accompanied by a communication detailing the economic and legal context surrounding this new initiative. It was put together by the staff of European Commissioner for Justice, Fundamental Rights and Citizenship Viviane Reding and European Commissioner for Industry and Entrepreneurship Antonio Tajani.
For the most part, the reform proposed by the Commission seeks to plug the legal gap on the protection of consumer rights for those buying a customised package holiday on line - be it from one particular trader or several traders linked by a trade partnership. With this type of situation not being covered by the current directive, if consumers run into trouble, they wrongly believe that they have adequate protection, and traders are unsure of their obligations. What is more, this use of the internet to put together customised travel services is growing (23% of holidaymakers, whilst 23% still use traditional packages). The draft directive, if approved, would enable the rights of 120 million additional holidaymakers to be protected.
“In the 1990s, most Europeans picked out a pre-arranged package deal from a brochure and booked it at their local travel agent (…). But times have changed (…). EU package travel rules need to be fit for the digital age and meet consumers' expectations. Today we are boosting protection for millions of consumers booking customised travel arrangements. The EU is acting to provide a safety net and peace of mind for holiday makers if something goes wrong”, Reding stated. Recalling that tourism represents 1.8 million companies and around 9.7 million jobs, Tajani said in a press release that the proposal's main objective is “to support all travel packages both on- and off-line while ensuring a balanced set of rights for travellers”.
For purchasers of traditional and customised packages. The proposal will offer: - stricter controls on price surcharges (with a 10% cap on price increases) and the obligation to pass on price reductions in equivalent circumstances; - strengthened cancellation rights (consumers will be able to terminate the contract before leaving home, paying the travel organiser a reasonable compensation. They will also be able to cancel the contract before departure in the event of natural disasters, civil unrest, or similar serious situations at the destination, if these disruptions are likely to compromise their holidays - for example, when embassies give negative travel advice for a given country; - clearer information on liability (consumers should be informed in simple and understandable terms that the travel organiser is responsible for the proper performance of all the services included in the package); - better redress (consumers will not only be able to benefit from tariff reductions in cases of non-conformity of a travel service with what should have been provided, but will also be able to claim compensation from all the immaterial damage suffered - particularly in the case of a spoiled holiday); - a single contact point if something goes wrong (consumers will be able to address their complaints or claims directly to the retailer (in this case, the travel agent) with which they booked their holiday.
For purchasers of other customised travel arrangements. The proposal provides for: - the right to have their money back and, if needed, to be repatriated if, during their holiday, the seller, transporter or any other service provider concerned goes bankrupt; - clearer information about who is liable for the performance of each service.
For businesses. The current proposal should reduce red tape and compliance costs by creating a level playing field between different travel organisers: - by abolishing requirements to reprint brochures (which, according to estimates, will save tour operators and travel agencies €390 million per year); - by excluding managed business travel from the scope of the directive, which is expected to lead to savings of up to €76 million per year; - by introducing EU-wide rules on information, liability and mutual recognition of national insolvency protection schemes, so as to facilitate cross-border trade. (AN/transl.fl)