The Myth that surrounds the so-called DIY Package Holiday!
The collapse of travel companies in recent years has led to a huge Consumer Detriment; many Consumers are still battling to get their money back from what they believed to be solid ‘refund’ schemes. The principle reason for this rests in how the main parties deal with the Consumer applications for refunds. It is ironic, that the one Organisation who is responsible for creating the uncertainty in the UK as to what constitutes a package (initially believing as we do that virtually all holidays bought are packages) are now apparently advising Consumers (through an agent company) that they have ‘bought’ a ’split package’ and are therefore not due refunds under the refund scheme.
How times change!
So what constitutes a package?
Under Regulation 2 of the Package Travel Regulations (these regulations were made following the introduction of the Package Travel Directive in 1990), it states that a package arises when:
- A journey of 24 hours or more,
- Or includes overnight accommodation, and consists of at least two of the following elements:
- Transport, Accommodation or Ancillary Services.
The Regulation goes onto state that:
- Separate bills/accounts for each service will not make it anything other than a package
- Any request made by a Consumer on how the package should be put together shall still make it a package!
Quite clear then?
Not quite; the problem is that the CAA several years ago mounted a legal challenge against tour companies that did not hold ATOL licences; those companies claimed that they did not sell packages, that they were simply acting as agents!
The principal case was in my view fought on quite abstract lines and did not deal with the reality of what a Consumer faces.
This point was recognised by the court and was followed up by the now famous guidance note to what constitutes a package, produced by the government in January 2008.
In that guidance, they reflected what the court said; that each case would be decided on the facts, the information given to the Consumer and if the Consumer’s perception was that they thought that they had bought a package – then a package it would be!
So lets examine what Consumers actually buy. Most Consumers who contact us state quite clearly that they have always bought package holidays and that they would never buy so-called DIY holidays.
If you examine the plethora of travel websites, you are often faced with the choices of – accommodation only – flight only – flight and hotel. Most Consumers choose ‘flight and hotel. They do so because they believe that they are buying a holiday – a package – a bundle – something that is put together for their ease and convenience by the company whose site they are exploring.
If we take a typical route of Consumers, it is often the case that once you have entered your chosen destination, you will be offered a flight. Most websites offer a choice of flights and times – some offer different airports. The Consumer will choose their flight and are then presented with a range of hotels and board basis. Once the Consumer has chosen the hotel, they are then directed to another page offering ‘bolt-ons’ – transfers, baggage, travel insurance, extras and so on. Once they have made their choices, they are then directed to a summary page of the holiday they have chosen together with a summary of the price and total to be paid.
At no stage is there a warning, advising the Consumer that if they choose this product, that they will not have the full Consumer Protection of the Package Travel Regulations if they became ill or injured, or if they needed assistance.
They are presented with a ‘tick-box’ which indicates that they have read and understood the terms and conditions of that company. The Consumer has no concerns that they are buying anything other than a package and believe that they are fully covered by the protections of law if something should go wrong.
We know that many Consumers simply tick the box, never believing that they are quite possibly opening themselves to difficulties and in extreme cases, financial hardship.
Compare that process then from buying a holiday from a hard copy brochure. The Consumer will choose their country, the resort and from a range of hotels, their chosen accommodation. They will examine the price panel and from the range of dates, they will choose the price they are prepared to pay. Within the price panel there are choices on sea views, full board, half-board or all-inclusive and so on. Each of these extras are items that you will add to the price. the price panel will usually indicate which airport you can fly from and it will direct you to the flight section in the brochure. From that flight section you can choose to fly from your local airport at different times or for that matter, different airports. Each flight will usually attract a further supplement. In some brochures, you can also choose how you wish to be transferred to your destination. Holidaymakers present their choice to the agent and it is booked subject to any changes that need to be made. the Consumer is provided with the terms and conditions and has no concerns that they are buying anything other than a package and believe that they are fully covered by law if something should go wrong.
So, what exactly is the difference between the so-called new way of buying holidays on the internet and buying from a brochure? Exactly nothing!
In both methods of booking, the Consumer has no real knowledge of the various companies that are gathered together to make the package – they believe that they have one contract – that being with the internet travel provider or the owner of the hard copy brochure.
It is important to nail the lie that underpins this area – UK Consumers know a package when they see one and unless it displays clear ‘health warnings’ on the lack of Consumer Protections, the clear logic is that it simply has to be a Package Holiday!
I have said it before and will say it again, this is simply the Travel Industry wearing a new coat with the old pre-1992 rules of business stuffed into its pocket.
It is time for UK politicians to get engaged with the detriment suffered by their constituents and for the European Commission not to be persuaded by the siren voices of the Travel Industry, that they somehow deserve special treatment (yes chaps, we know what you have been up to!). Time to create a good regulated travel product – that should build confidence at a time when it is needed most!
Tags: DIY Holidays, Package Travel Directive, The Package Travel Regulations
HTW has noted that amongst the submissions to the Committee on Toxicity (COT) it has been suggested that the symptoms highlighted by crew and passengers were akin to the condition of hyperventilation.
HTW has for many years received reports from concerned holiday makers or independent travellers as to the safety of their aircraft, ship or boat, train or road transport.
