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Tougher laws to protect 10 million Britons who book holidays online Tougher laws to protect 10 million Britons who book holidays online
(6 months later)
New EU-driven rules aim to give equal rights to customers who booked online and those who bought at a travel agent
Julia Kollewe
Mon 14 Aug 2017 19.25 BST
First published on Mon 14 Aug 2017 06.30 BST
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Travellers booking package holidays online are to receive greater protection if a holiday company goes bust, under government proposals to strengthen rules.Travellers booking package holidays online are to receive greater protection if a holiday company goes bust, under government proposals to strengthen rules.
The government said enhanced regulations, due to take effect in July 2018, would better protect an extra 10m UK package holidays booked over the internet.The government said enhanced regulations, due to take effect in July 2018, would better protect an extra 10m UK package holidays booked over the internet.
Launching a six-week consultation on the proposals, the consumer minister, Margot James, said: “While consumer laws protect millions of holidaymakers from the fallout if a travel company goes into administration, the way we book holidays has changed significantly in recent years and it is important that regulations are updated to reflect this.Launching a six-week consultation on the proposals, the consumer minister, Margot James, said: “While consumer laws protect millions of holidaymakers from the fallout if a travel company goes into administration, the way we book holidays has changed significantly in recent years and it is important that regulations are updated to reflect this.
“On average, UK households put aside £100 every month for their holidays. The proposals outlined in this consultation will ensure that an extra 22% of holidays can be booked online with holidaymakers safe in the knowledge that they will get their hard-earned money back if something does go wrong.”“On average, UK households put aside £100 every month for their holidays. The proposals outlined in this consultation will ensure that an extra 22% of holidays can be booked online with holidaymakers safe in the knowledge that they will get their hard-earned money back if something does go wrong.”
The Association of British Travel Agents (Abta), the industry body, said changes to the way trips were booked had created a gap in consumer rights. Its holiday habits report 2016 found that more than three-quarters of UK consumers now booked online.The Association of British Travel Agents (Abta), the industry body, said changes to the way trips were booked had created a gap in consumer rights. Its holiday habits report 2016 found that more than three-quarters of UK consumers now booked online.
Half of holiday arrangements are not financially protected if a company ceases trading. Abta hopes that the changes will provide clearer and stronger protections for holidaymakers, ensuring people who book holidays online enjoy the same rights as those who book with a traditional travel agent.Half of holiday arrangements are not financially protected if a company ceases trading. Abta hopes that the changes will provide clearer and stronger protections for holidaymakers, ensuring people who book holidays online enjoy the same rights as those who book with a traditional travel agent.
The government is calling for better information to be provided when booking, ensuring holidaymakers’ rights to refunds are clearly set out, along with an extension to current protections to cover the millions of UK travellers who buy package holidays online.The government is calling for better information to be provided when booking, ensuring holidaymakers’ rights to refunds are clearly set out, along with an extension to current protections to cover the millions of UK travellers who buy package holidays online.
Ensuring the business that puts the package together is responsible for the entire holiday even if other firms are responsible for some components has also been suggested as part of the regulations.Ensuring the business that puts the package together is responsible for the entire holiday even if other firms are responsible for some components has also been suggested as part of the regulations.
The new rules are part of the EU’s package travel directive, which comes into force in July 2018.The new rules are part of the EU’s package travel directive, which comes into force in July 2018.
Alex Neill, a managing director of consumer organisation Which?, said: “Holidaymakers should be able to book their trips without worrying about whether they will be protected if their travel agent, airline, or hotel goes bust. The government must make sure gaps in protection are addressed so that consumers have peace of mind however they book their package holiday”.Alex Neill, a managing director of consumer organisation Which?, said: “Holidaymakers should be able to book their trips without worrying about whether they will be protected if their travel agent, airline, or hotel goes bust. The government must make sure gaps in protection are addressed so that consumers have peace of mind however they book their package holiday”.
The protection for holidaymakers offered by the government-backed Air Travel Organiser’s Licence (Atol) sometimes fails to cover people buying flights and hotels separately.The protection for holidaymakers offered by the government-backed Air Travel Organiser’s Licence (Atol) sometimes fails to cover people buying flights and hotels separately.
Last summer, the collapse of budget tour operator LowCostHolidays left 110,000 holidaymakers out of pocket and highlighted how travellers were left vulnerable by booking through websites that appeared to be in the UK but were in fact based overseas so not under the Atol umbrella.Last summer, the collapse of budget tour operator LowCostHolidays left 110,000 holidaymakers out of pocket and highlighted how travellers were left vulnerable by booking through websites that appeared to be in the UK but were in fact based overseas so not under the Atol umbrella.
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