Are you planning an escape to somewhere via a package holiday this year? If so you should be aware of the Package Travel Directive 90/314/EEC (“the Directive”). How we travel in terms of package holidays nowadays is a lot different than in the past. For example package holidays in the past were “pre-arranged”. Nowadays given the power of the internet, the packages are combined at the consumer’s request. Known as “dynamic” package holidays, these are package holidays where two or more services for a single holiday (such as flights, hotel or car rental) are bought at the same time and from the same supplier, or from different suppliers that are commercially linked (such as airlines, hotel chains and car rental companies), and are put together according to the consumer’s specific needs. Dynamic packages are becoming a lot more popular, especially online. The current law on package holidays is contained in the Directive. A recent EU case clarified the position in the area but also highlighted failures with the current law for example establishing where liability lay, given the multitude of different retailers involved.

The Current law – the Directive 

For those of you who are more interested in package holidays, knowing your travel rights can prove key to an enjoyable experience whilst abroad. Say, for example, you have booked two weeks in Lanzarote in August. Do you have a right to a refund for the entire package including the flight and the accommodation and assistance if you are stranded in Cork due to your flight being cancelled? If your cancelled flight has been purchased as part of a package holiday, you have more extended rights under the Directive. You may have a right to a refund for the entire package including the flight and the accommodation and assistance if you are stranded.

What does the Directive cover?

The Directive covers consumers who travel under a package holiday in the EU. A Package Holiday means the sale of a “pre-arranged” combination of transport, accommodation and other tourist services such as sightseeing tours.

Package Operator Liability

The Directive makes tour operators liable in certain circumstances for the performance of the service offered. There are some exceptions, for example cases of “force majeure”, or similar circumstances which could be neither foreseen nor overcome. However, even in these cases the organiser must use his best endeavours to help consumers.

Information for Consumers

Most package holiday information is contained in brochures. Under the Directive the brochure must state clearly and accurately “the price, destination, itinerary and the means of transport used, type of accommodation, meal plan, passport and visa requirements, health formalities, timetable for payment and the deadline for informing consumers in the event of cancellation”.

Cancellation rights

Consumers are entitled to cancel the contract if the tour operator seeks to change the essential elements of the arrangements agreed. There are provisions specifying the consumers’ rights if, after departure, a significant proportion of the services contracted for are not provided or the organiser and/or retailer fail to perform in line with his obligations arising from the contract.

Where to from here?

In July 2013, the European Commission proposed a new Directive to improve protection for holiday makers and modernise EU rules on package holidays. The Commission is therefore proposing to clarify the law so that the consumer will know when they are covered and when they are not. The aim of the revised Directive is to extend the current protection for traditional, pre-arranged packages to these new “dynamic” combinations of travel services. If those new combinations of travel services feature the characteristics associated with packages, the consumer is protected under the new rules. This Directive is not yet law throughout the EU.

Niall Colgan is  a Cork based Solicitor with over 10 years in private practice.

Jan 13, 14