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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The current Package Travel and Linked Travel Arrangements Regulations 2018 set out a series of requirements for organisers of package holidays and linked travel arrangements. They also provide bespoke protections for travellers.
The Government recently consulted on targeted changes to the regulations. The aim was to optimise the regulations to support growth in the UK’s vibrant package holiday sector, while retaining the vital consumer protections they provide.
We were pleased to receive strong engagement across a rich variety of stakeholders. These included approved bodies, consumer groups, airlines, members of the leisure and hospitality sector, accommodation providers, lawyers and many more. Thank you to all those who took the time to respond and engage with us throughout the call for evidence, the consultation, and the many stakeholder engagement sessions.
Providers of package holidays are rightly proud of their industry and what they offer. From our own assessment and extensive industry and stakeholder engagement, it is clear that the confidence currently felt in the package travel sector is underpinned by the protections offered by the regulations. Knowing that, if things go wrong, they will be properly looked after by their tour operator is a strong driving factor as to why consumers continue to choose to book package holidays.
Having carefully considered responses, and following extensive engagement with stakeholders, the Government intend to bring forward legislation to make the following key changes to the regulations.
Linked travel arrangements
There are two key changes to LTAs:
absorbing LTA type A into the definition of a “package”: this would provide full package protections when consumers make a booking in circumstances similar to current type As, effectively extending consumer rights while simplifying business compliance; and
removing LTA type B entirely: the Government plan to eliminate type B arrangements (where a trader facilitates booking of a second service from another trader within 24 hours). These arrangements provide minimal consumer protection and are easily circumvented. Eliminating this category would support domestic sector growth, allowing small businesses like B&Bs to refer customers to local activity providers without triggering the regulations.
Regulation 29
The Government are also proposing to modify regulation 29, which deals with redress for third parties. The key changes include:
establishing a 14-day period for refund of cancelled services
clarifying that the regulations confer a statutory right to redress in specified circumstances , and not merely a right to seek redress.
These changes aim to help package travel organisers recover costs from suppliers more effectively, enhancing business resilience and ensuring the costs of consumer protection are distributed more equitably.
We will also consider how best to treat other issues that were highlighted in the consultation responses and that were not able to be addressed through legislation.
The Government will legislate to implement these reforms by June 2026 under the provisions of the Retained EU Law (Revocation and Reform) Act 2023.
The consultation response is now live and can be accessed at: www.gov.uk.
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