Collective Commentary about the New Package Travel Directive

ARTICLE 19 | STEPHEN MASON 433 Note: This insolvency protection does not cover contracts with parties other than XY, which can be performed despite XY’s insolvency. • Directive (EU) 2015/2302 as transposed into the national law (Hyperlink). As stated, these forms can be adapted. 8. Crucially, where this Information is not provided to the traveller at the relevant time, the arrangements sold are treated as a package for key purposes , including, most importantly, the imposition of liability and to pay compensation which are placed on a package organiser and the obligation to provide assistance (as per Articles 13 to 16, see previous chapters). All these obligations are imposed on the facilitator of the LTA, who could therefore face substantial claims for personal injury compensation, for example, if the Notice requirements are not complied with – a heavy penalty for getting this wrong! 9. Needless to say, in normal circumstances, when the requirements are complied with, the LTA facilitator has no liability if things go wrong during the holiday. 10. In a Type 2 LTA, Trader B is obligated to tell Trader A when a contract with the traveller is concluded. Systems need to be in place between traders to ensure that this happens. It is interesting to note the following: in the UK, most overseas package holidays include a return flight, and financial protection for such packages is provided under the “ATOL” scheme administered by the Civil Aviation Authority. The ATOL scheme is a brand which inspires confidence in consumers. But the unsatisfactory weakness of financial protection of LTA’s means that the ATOL scheme is not available to protect LTA’s, for fear of damaging the brand. Accordingly, protection can only be provided via a bond, insurance or a trust account.