Those Who Organise Retreats & Events Will Often Be Considered Tour Operators
On 1st July 2018, new law came into force changing the definitions of what a Package Holiday is. The laws apply to anyone who might arrange a holiday or trip with inclusive benefits: a ‘package’ arrangement.
So, What Has Changed?
A package is now generally defined as the combination of two or more different types of Travel Services, which are combined for the purpose of the same trip.
There Are Now Six Types of Travel Services:
| Category 1 | single contract (usual package scenario, where Travel Services are sold at an inclusive price). |
| Category 2 | sold in single booking process, where Travel Services from different suppliers are combined within one booking. |
| Category 3 | sold at an inclusive / total price, where Travel Services from different suppliers are combined within one transaction. |
| Category 4 | sold as a “package” (or under a similar term), where the words for instance “combined-deal”, “all-inclusive” or “all-in arrangement”. |
| Category 5 | contract allows subsequent choice, where a trader sells a product that allows a traveler to select different travel services after they have concluded the contract will also count as package. |
| Category 6 | sold through linked online booking process, where the traveler’s name, payment details and email address are sent from the first trader they purchase from to the second and a contract is concluded. |
Why does this matter?
The new regulations explicitly places Liability for the performance of the travel services included in the package, on the organiser – irrespective of whether the travel services are performed by third parties. Liability is not only what we understand in Insurance terms but also means any lack of conformity and travelers will be entitled to compensation for damages and loss of enjoyment. Packages must be financially protected and consumers must be given statutory information.
If you are providing services that place you in this category, you need to know that you are exposed to these new regulations.
The consequences for failing to adapt your business to the new regulations might not only leave you facing liability claims but also a number of criminal offences:
- Failure to satisfactorily provide pre-contractual information
- Failure to satisfactorily provide a contract or confirmation of contract and prescribed information
- Failure to put in place compliant insolvency cover
- Obtaining release of monies held on trust for insolvency cover by false statement
- Failure to put in place compliant insolvency cover or provide pre-contractual information for LTAs
We are here to help!
Contact info@BGi.uk
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Telephone: 01367 246130
Main – Photo by Frames For Your Heart on Unsplash
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