All you need to know about the Package Travel and Linked Travel Arrangements 2018

The new Package Travel and Linked Travel Arrangements 2018 have replaced and considerably modified the former 1992 Package Travel, Package Holidays and Package Tour Regulations 1992. The new regulations came into force on 01 July 2018. Holidays taken prior to this will be covered by the previous regulations.

A package holiday definition

A package holiday is one that has at least two components, all as part of a ‘package’ for which you pay an inclusive price: transport (such as flights, transfers etc.) accommodation and/or another tourist service which makes up a significant proportion of the package. It must last more than 24 hours.

If you submitted one set of payment details with a total price and didn’t have to re-enter them and completed the transaction within 24 hours, this falls into the definition of a package.

The organiser (tour operator) is liable for the financial failures of hoteliers, suppliers and services within the terms of the contract.

Linked travel arrangements (LTA)

If you purchase a minimum of two different types of travel service from different providers this is not a package travel arrangement. However, if you buy two or more types of travel service together, put together by the travel organiser and you purchase both within a 24 hour period, this is a Linked Travel Arrangement.

For example, you buy a flight with a link to a hotel provided by a different company. If you buy an online flight and then have a link on the aircraft website to an accommodation website, where you purchase a hotel in a separate transaction.

The travel organiser must provide information to you in the same way as it does for a package. (See below).

An LTA does not give you the same protection that the package does. The organiser is not responsible for the service provided by the companies. However, it is responsible for providing financial protection for the refund when a travel service is not carried out due to insolvency. If it is responsible for the carriage of passengers – for example their airline flights – then it is also responsible for their repatriation.

Information

The Organiser must clearly state the details of the booking in a Standard Information Form, before you make any payment. The travel organiser also has to provide you strict details of the contract laid out in the Schedules to the Regulations, to accompany the confirmation invoice. This should include specifics of any arrangements, dates, times, costs, meals, excursions included/excluded, activities, transportation, cancellation fees, contact details for the package organiser, information on compulsory/voluntary insurance regarding repatriation in the event of illness/death/accident, and/or the cost of termination of the contract by the traveller. Interestingly, it must also inform the traveller about visa and passport requirements. See Foreign Office in epic fail on passport validity information.

Organiser makes changes

The Regulations state that an organiser must inform the traveller clearly and without undue delay. The organiser must provide the traveller with the option to terminate the contract without paying a termination fee if:

  • it has no choice but to significantly alter the main characteristics of the package

or

  • cannot fulfil any special requirements of the traveller which the organiser has previously accepted (paragraph 1 of Schedule 5)

or

  • increases the price by more than 8%

You should be given a reasonable length of time to respond to the above. If you do not, the organiser must send you further communication with a deadline. If you still do not respond the organiser will terminate the contract and refund all payments within 14 days.

Traveller chooses to terminate a package

At any time before your package starts, you can terminate the contract. However, you may have to pay the organiser an appropriate fee which they can justify. The fee will take into account costs that the organiser no longer has to pay to a third party. It should also take into account “alternative deployment” of travel services. This is where the organiser has been able to sell a part of the package to someone else. There may be cases where the organiser has not been able to do this and decisions would be made on case-by-case basis.

For example, it would be justifiable to not reimburse the price of an air travel ticket if the organiser cannot cancel or sell it on.

Reasonable termination fees based on the above and the length of time between cancellation and the start of the package must be specified in the contract.

If there are unavoidable and extraordinary circumstances at the destination (or in the immediate vicinity which would affect the travel to the destination) of your package travel contract, such as war, security risks etc. you can terminate the contract without paying a termination fee. You should be fully refunded within 14 days.

Redress

The consumer is entitled to redress for a variety of things dependent on what regulation has been broken and when.

Loss of value –  the difference between the cost paid for the holiday and the one received – e.g. the cost of a 4-star hotel which you paid for and the 2-star hotel to which you were moved.

Out-of-pocket expenses – incurred reasonable costs as a result of the breach of contract – e.g. having to pay for taxis when travel paid for was not provided.

Loss of enjoyment – compensation for the disappointment and distress caused by things going wrong – e.g. no children’s activities which were advertised.

Personal injury, compensation for any personal injury incurred abroad – e.g. medical bills, consequential loss etc, but specialist legal advice is thoroughly recommended for personal injury claims).

Package Travel and Linked Travel Arrangements 2018 on a sunsetFor more information, stories, laws and advice see All you need to know about booking/complaining about holidays/flights

book Logo cartoon cow at a laptop of book cover. How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

and for lots more help, tips, guidance and templates All you need to know about booking/complaining about holidays/flights

Don’t get blue this Monday, get away from it all…

Don’t get blue this Monday, get away from it all…

Holiday companies use Blue Monday for marketing – here’s how to turn the tables and make it sunny for you and for your wallet!

couple on beach sunset

Blue Monday is the third Monday in the first month of the year, falling this year on 15 January… It is claimed by some to be the most depressing day of the year. The term was coined by Cardiff University lecturer, Dr Cliff Arnall, in 2005, when he “scientifically calculated” a formula for a press release for Sky Travel. (See this Guardian article for more information)

Why depressing? Well, it’s cold, we’ve had a nice few days off over Christmas but we haven’t been paid yet and the credit card bills are starting to come in now. Our New Year resolutions are already failing… What can we do? How about getting away from it all or at least thinking about a future holiday?

Holiday companies will clamour to use this “special” day once again to boost their “deals”. So, for the 15th January, some expert money bloggers and I have joined forces to give you 15 tips on saving money when booking that holiday! We look at turning the tables and playing the travel companies at their own game, so you can save money when you book your trip away. Good huh?

sun setting over water consumer rights, ways to shop around, discounts, alternatives, thinking beyond and searching

Rights

1) I’ll kick off, as you would expect, with your consumer rights. “You have numerous consumer rights to cover you when booking your holiday and for when you are on holiday.  Be aware of them when booking. For example, if you feel that you have made a purchasing decision that you wouldn’t have made had you been given accurate information (such as a misleading price) you may be able to claim a refund under the Consumer Protection from Unfair Trading Regulations 2008”.  There is also the Package Travel, Package Holidays and Package Tour Regulations 1992 of which you should be aware. These give you lots of rights regarding any changes that the company may make, amongst other things!” From the 1st July 2018 use Package Travel and Linked Travel Arrangements.

Dates and shopping around

2) The Money Whisperer, Emma Maslin says “If you are looking for popular times e.g. school holidays for package holidays, it maybe best to book ahead but if you can be more flexible, wait until closer to the date for the best last-minute deals. We’re going to the same island we went to last year but booked ahead this time. We booked just 7 days before last year and it was over £200 cheaper per person. This year, it might not be a last minute option – that’s the risk you take. But if you are flexible and can go elsewhere or fly a different day to save money, then it pays to look around.”

3) Fiona Hawkes from Savvy in Somerset has found that booking accommodation and flights separately has always been cheaper than a package. She also advises looking round at all the various websites that do this for you, as some will also offer free cancellation or low cost cancellation cover for accommodation.

4) “Haggle!” implores blogger Emma Drew.  “We have haggled between Disney and Virgin Holidays for a cruise. Virgin Holidays were selling it for more than Disney, so we went armed with the info and got them to match Disney and throw some on board credit in! Add that to shopping around for flights with sites like SkySkanner where you can find flights cheaper than going direct.”

Discounts 

5) “Try it on!” Catherine Morgan Financial Money Coach cheekily encourages. “Say you are on your honeymoon or it’s a wedding anniversary, sometimes it works!  Be a bit savvy too. We saved a mint last year when we booked a TUI week away to Kos. We contacted the hotel directly and paid them £100 and got an upgrade with a swim up room. Thomson wanted to charge us £700 extra for the same!”

6) Mrs Mummy Penny, Lynn James, suggests thinking of your friends and family who work for a travel company or hotel. Maybe they have a friends and family offer code they can give you? One of her friends is a concierge at Aria in Las Vegas and can always find her a deal. Often it makes it cheaper than package deals.

7) “Use cashback!” exclaims Emma Bradley of Mums Savvy Savings “Look for discount codes and then use sites like Topcashback* which will give you money straight back into your account too. I saved about £150 from doing this last year.” (I got about £70 from Thomson last Summer too. You can also use Zeek* to see if there are any discounted gift cards which you will be able to use with discounts to reduce the cost still further. (*Refer a friend links. So if you sign up you’ll get a bonus and so will I 🙂 ))

Thinking ahead

8) Faith Archer from Much More with Less cuts food costs while away by booking somewhere to stay with self-catering facilities. “Even the odd breakfast in your room or packed lunch can save cash compared to eating out for every meal!”, she says.

9) Andy Webb from Be Clever With Your Cash advises booking car hire far in advance for the lowest prices “AND make sure the car is big enough! It will only cost a few quid more to get a bigger car when booking, but can be hundreds if you have to upgrade at the check-in desk! Shop around for the car hire, looking direct as well various comparison sites. Plus, if the excess waiver isn’t included don’t buy it from the car rental company. You can get policies for a few quid elsewhere that’ll cover you for damage to the car. Make sure you are comparing like for like inclusive totals.”

10) Buy your travel insurance the day you buy your holiday in case you need it before you go! “But also think about how you are going to buy it. Shop around as it will nearly always be cheaper than the one you get offered with a package. And look at all the group (e.g. group, couple, family) options however your group is made up” says William Pointing from Great Deals Made Easy.

Alternatives to the usual booking routes

11) Hollie Gregersen from ThriftyMum recommends house sitting or pet sitting! “There are a number of websites that provide details of homes you can stay at providing affordable options for holidays in the UK and abroad, including house swaps”.

Getting there

12) Pete Chatfield from Household Money Saving suggests taking a coach if travelling in Europe and saving a fortune.

13) A Thrifty Fox blogger Emily Rowley considers stopover flights; if flying long haul you could save hundreds by planning a break in your journey (tie in with meals if it makes it more bearable!)

14) Joseph Seager of A Thrifty Chap tries to be flexible when booking. Midweek is nearly always cheaper than a weekend. So are less sociable hour flight times. You can save by flying from other airports too, but make sure to factor in different travel to airport/parking/stay costs for your final comparison.

Everytime you search!

15) Above all, if you go back to a website, clear your cookies first. The travel website will put that price up if it knows you’ve looked at that holiday before!

For everything you need to know about your rights when booking, during and after, your holiday see All you need to know about booking/complaining about holidays/flights for lots of different rights and what you should do when and how.

How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

For even more information, advice, tips, your consumer rights and template letters for most sectors GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!