Holidays are a pleasant escape from our stressful lives and routines. Yet, to truly enjoy our vacations, it is important that they are problem-free. While it is impossible to guarantee a trouble-free holiday, we consumers should remember that there is a robust legal framework in case something goes wrong. To fully benefit from this protection, it is vital that we familiarise ourselves with our legal rights and also our responsibilities.
If we opt to buy a prearranged travel package from a travel agency, comprising multiple services like flights and accommodation, or a linked travel arrangement, then we should keep in mind that our purchase is regulated by the Package Travel and Linked Travel Arrangements Regulations. Under these regulations, travel agents and tour operators are responsible for the holiday they sell to consumers, and must ensure that the holiday is executed as outlined in the provided information material given to consumers upon booking the holiday.
The regulations also outline the specific information consumers should receive regarding the holiday offered for sale. The information should include: the destination and mode of transport used; the type, location and description of the accommodation; visits, excursions and other services included in the holiday; the meal plan; where applicable, the approximate size of the group; the contact details of the holiday organiser; the total price of the holiday inclusive of taxes and compulsory charges; the required deposit and payment schedule; cancellation terms; and general information about passport, visa and insurance requirements.
In addition, once a deposit is paid, the Package Travel Regulations oblige travel agents to provide an insolvency fund certificate to consumers. This certificate enables consumers to request a refund of the money paid in the event of the agency’s closure before the completion of the booked holiday. The insolvency protection also covers costs associated with the repatriation of travellers if required.
A reasonable cancellation fee must be stipulated in the sales contract
Once a package holiday is booked, if any issues arise, the holiday organisers are obliged to provide a suitable remedy. Initially, they are obliged to address any lack of conformity with the original sales contract through alternative arrangements. For example, if the package holiday is significantly altered or cancelled by the organiser, the latter should offer the following choices:
■ A substitute package of equal or superior quality; or
■ A package of lesser quality along with a reimbursement for the price difference; or
■ Termination of the sales contract and a full refund of the money paid.
Should we opt to cancel the holiday and claim a refund, the travel agency should refund the money within 14 days.
The regulations also stipulate that the package organiser cannot alter the price agreed in the sales contract. This does not apply, however, if the additional charges are directly related to transport costs, taxes or the exchange rate. Having said this, even in these situations the increase in price should not exceed 8% of the total price of the package. If it does, then we legally have the choice to cancel the booked holiday and claim a full refund of the money paid.
Regarding cancellation, the rules stipulate that as consumers we have the right to cancel our booked holiday at any time up to the start of the holiday against payment of a reasonable cancellation fee which must be stipulated in the sales contract. Nevertheless, we retain the right to cancel our holiday at no cost and receive a complete refund if extraordinary circumstances arise, such as war, terrorism, pandemics or natural disasters that substantially impact the holiday or jeopardise our safe arrival at the destination.
Issues with the package holiday may also arise while we are on holiday. Should this happen, it is imperative that we promptly inform the travel agency or its representative. If the problem cannot be resolved within a reasonable time frame, then the travel agency should provide us with appropriate alternative arrangements or offer proportional compensation for the shortcomings encountered.
If holiday problems are not resolved to our satisfaction, it is advisable that we complain in writing to the travel agency and collect all documents and evidence relevant to the complaint. Additionally, we may seek compensation for any extra expenses incurred as a direct result of the changed holiday. To claim these expenses, we are required to submit pertinent receipts to justify our claims.
In situations where no amicable agreement is reached with the holiday organiser, we may then file a formal complaint with the Office for Consumer Affairs at the MCCAA to start the conciliation process.
Odette Vella is director, Information and Research Directorate, MCCAA.