In order to be protected from problems that may arise when people go abroad on holiday, they need to be aware of their legal rights. The 2018 Regulations on Package Travel and Linked Travel Arrangements regulate the purchase of package holidays as well as linked travel arrangements, which takes place when consumers book a travel service from a website and are subsequently invited to book a second or third service.
When selling these type of holidays, travel agencies and tour operators are in the first instance obliged to provide clear and correct information on the holiday. The regulations stipulate that before a sales contract is concluded, prospective consumers should be provided with specific information on:
• 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;
• general information about the passport, visa and insurance requirements.
When they pay a deposit, the agency must give consumers an insolvency fund certificate. This certificate entitles consumers to claim a refund of the money paid should the agency go out of business before the holiday booked is fully executed. The insolvency protection also covers costs related to the repatriation of travellers if necessary.
If after a holiday is booked, the travel agency cancels or significantly alters the original holiday, the agency is in the first instance obliged to inform the affected consumers and offer them the following choices:
• accept the new travel arrangements;
• terminate the contract without paying a termination fee and claim a full refund of the money paid;
• choose an alternative package holiday of equivalent, higher or lower quality. In the case of a lower quality package, consumers are entitled to a refund of the difference in price.
If the consumers choose to cancel the holiday and claim a refund, the travel agency should provide this within 14 days.
In situations where it is the consumer who decides to cancel the booked holiday, the regulations stipulate that consumers can cancel up to the start of the holiday for a reasonable cancellation fee. Consumers are, however, entitled to a free cancellation and a full refund in situations of extraordinary circumstances that significantly affect the holiday or prevent the consumers from reaching their destination safely.
Consumers can cancel up to the start of the holiday for a reasonable cancellation fee
Free cancellation also applies if the organiser of the booked holiday raises its price by more than eight per cent. While holiday-package organisers can only increase the price of a booked holiday when there are increased costs related to transport, taxes or the exchange rate, if this increase exceeds eight per cent, consumers may opt to terminate the contract without paying a termination fee. Furthermore, the price stated in the contract of sale cannot be increased for any reason during the 20 days before the start of the holiday.
Holiday plans may not only change before the date of departure but also while the consumers are actually on holiday. When this happens, the agency responsible for organising the holiday must offer consumers suitable alternative arrangements and, where applicable, provide compensation.
If, for instance, a booked excursion cannot take place, the organiser should try to offer an alternative excursion of the same value. If the excursion offered is of a lower value, then consumers should be refunded the difference in price. Unless the reason for the change in the holiday plan is due to extraordinary circumstances beyond the organiser’s control, consumers may also seek financial compensation from the holiday organiser.
Consumers should remember that they are responsible to immediately report any problems encountered during the holiday to the organiser, as the latter must be given the possibility to fix the problem or make alternative arrangements. If an immediate solution is not possible, then the complaint needs to be made in writing and sent to the travel agency. It is also advisable to gather as much evidence as possible to support one’s case.
In situations where no amicable agreement is reached with the holiday organiser, consumers may then file a formal complaint with the Office for Consumer Affairs at the MCCAA.