Collective Commentary about the New Package Travel Directive

ARTICLE 19 | STEPHEN MASON 431 types of travel services purchased for the purpose of the same trip or holiday, not constituting a package, resulting in the conclusion of separate contracts with the individual travel service providers, if a trader facilitates: (a) on the occasion of a single visit or contact with his point of sale, the separate selection and separate payment of each travel service by travellers; or (b) in a targeted manner, the procurement of at least one additional travel service from another trader where a contract with such other trader is concluded at the latest 24 hours after the confirmation of the booking of the first travel service”. As we can see, there are 2 types of LTA, which I will call Type 1 and Type 2 respectively. In Type 2 LTA’s, 2 different traders are involved in selling to the traveller, and I will call them Trader A and Trader B. (In Type 1 LTA’s there will only be Trader A normally). In this chapter, we look at what the financial protection consists of. It must be stated at the outset, however, that the protection provided is nothing like as strong as is provided for packages. B. WHAT ARE THE POINTS TO NOTE ABOUT ARTICLE 19? 1. The obligation is placed on the trader “facilitating the LTA”. In Type 2 LTA’s, the relevant trader will be Trader A. 2. The security they must provide is for a refund of payments they receive. So there is no security for payments received by Trader B. Security must cover repatriation, where that is appropriate, i.e. the service(s) sold by Trader A includes carriage of passengers. 3. The protection provided is against non-performance as a result of his own (Trader A’s) insolvency. It follows that: • There is no protection here against insolvency of the travel service provider (e.g. airline, hotel) – unless, of course, that provider actually is Trader A, which may not be that common. Normally Trader A will be a travel agent. • The protection only subsists for the length of time that Trader A holds the money. In other words, once Trader A passes the money on to the travel service provider, the financial protection ceases. 4. The provisions of Articles 17 and 18 are incorporated here too, i.e. requirements as to scope of protection andmutual recognition of protection regimes between Member States – see previous chapters.