The association has warned that although the new directive will not come into effect until 2018, the changes are likely to be “extensive” and businesses need to start planning for the change now.

Abta has spent the summer visiting members to explain to them the changes that PTD will bring.

“The date [for implementation] might seem far off, but the changes could be extensive and businesses must prepare,” said Stephen D’Alfonso, Abta’s head of public affairs.

Abta said it had visited 300 members in eight cities, and held a hosted conference call, fielding questions on what constituted a package, the new Linked Travel Arrangements and cancellations.

D’Alfonso said: “We now know which regulatory changes are coming. Depending on the type of sales travel businesses are making, the changes could be extensive, requiring significant systems and process changes. It’s important to begin to think about this now.”

Abta on key issues regarding the Package Travel Directive

What has changed about the creation of a package?
There will be several new ways to create a package. The current definition of a combination of services sold under one contract will still be a package, but bookings where the customer enters into separate contracts can also be packages.

Under the directive, packages will include travel arrangements that:

• Include at least two different travel services selected from the same trader before the traveller agrees to pay, or
• Are offered or charged at an inclusive or total price, or
• Are advertised or sold under the term “package” or a similar term.

As an agent selling a flight and accommodation as separate  arrangements, will I be packaging within the new directive or selling the new Linked Travel Arrangement?
When a customer selects the services from one shop, call centre or website, before agreeing to pay, and pays a total price, this would become a package, so agents would become liable for financial protection and for the performance of all the package services.

If you sell the services in a way that doesn’t fall into any of the package definitions (see the first question), it is likely to fall into the new category of Linked Travel Arrangement (LTA).

An arrangement becomes an LTA only if it is not a package, and when the customer selects each service separately from the same trader, pays for each separately, entering separate contracts.

Sellers of LTAs aren’t responsible for the services but do have to put some financial protection in place.

Can additional services, such as car parking, airport hotels and other incidental services create a package or LTA? For example, if I book a hotel plus car parking, does that make it a package?
Adding such services to a booking, apart from hotels, will not generally create a package or LTA, except where they account for a significant proportion of the value of the combination (generally around 25% or more) and are advertised as, or make up an essential feature of, the combination of travel services. Accommodation other than for residential purposes will always be a relevant travel service unless it is part of a transportation service, such as a berth on a train. Cruises remain in the scope of the directive.

With the new directive, the client will have a right to transfer the booking to another passenger; will our standard cancellation charges apply?
When a transfer takes place, you are entitled to charge the customer the costs that arise as a result. These could be your standard cancellation charges but the amount cannot exceed your actual costs in transferring the arrangement.