Proposed reform of package travel rules in Europe risk increasing prices and limiting consumer choice, the lobby group that represents online retailers has claimed.
Package law reforms will cause more confusion, claims OTA lobby group
Proposed reform of package travel rules in Europe risk increasing prices and limiting consumer choice, the lobby group that represents online retailers has claimed.
European Technology and Travel Services Association (Ettsa) was responding to a proposal document published by the European Commission on Tuesday outlining reform of the Package Travel Directive.
Fears about what the EC was preparing to announce prompted a group of OTAs in the UK to firm their own association, the Association of Travel Agents, to lobby against the widening of the scope of the legislation.
This group has now said it was pleased with the outcome and declared its job 90% done, but Ettsa remains unhappy about the proposals, which will now be considered by the European Parliament and aren’t expected to be enacted until 2016.
In a statement Ettsa, which represents the large global OTAs like Expedia as well as the main GDSs, said:
“The Commission claims that the proposal is designed to protect more travellers. What it does, however, is create more consumer confusion than ever before, and ultimately increase the cost of travel.
“Instead of addressing the real risks that consumers are exposed to – including the financial failure of suppliers, particularly airlines – the Commission creates a completely arbitrary definition of a package.
“This will entail considerable opacity as to which products are protected and which aren’t. It will hamper innovation in the travel distribution space, invite industry players to find loopholes, and thus create a questionable standard of protection.
“By trying to shoe-horn the 21st century travel market place into a 1980s legislative framework, the Commission ignores today’s well-travelled and technology-savvy European consumer.
“A family going on an all-inclusive holiday expects a different level of protection than a backpacker putting together a trip choosing elements from different websites.
“The proposal assumes every consumer is the same, and that results in a lowest common denominator approach. This proposal harms efficient travel distribution and paves the way for higher prices, while limiting choice.”
Ettsa added it will continue to give its views to the European Parliament and Council as the new rules make their way through the legislative process following a detailed review of the proposals.
It is due to make its views known to the Parliament in September and the beginning of the new parliamentary year.
