Passenger rights: package or linked travel arrangements

Passenger rights: package travel and linked travel arrangements

It is becoming increasingly common for consumers, when making travel arrangements, to opt to purchase several travel services, such as transport and accommodation, together. Depending on how those services are combined, this is referred to either as package travel or a linked travel arrangement, which is an important distinction to make in terms of identifying the applicable legislation and, therefore, the rights to be recognised in each case.

First of all, it is important to understand what is means by ‘travel service’, since the way in which two or more of these services are jointly offered or sold determines whether the combination of services constitutes a package or a linked travel arrangement.

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What is a travel service?

The concept of a travel service covers:

• the carriage of passengers;
• accommodation which is not intrinsically part of the carriage of passengers and is not for residential purposes;
• the rental of cars, other motor vehicles, or motorcycles requiring a Category A driving licence;
• any other tourist service not intrinsically part of a travel service within the meaning of the above.

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What is package travel?

A package is any deal or offer which combines at least two different types of travel services for the purpose of the same trip or holiday, where those services are booked under a single contract and purchased from one trader.

Package travel can also include services which, irrespective of whether separate contracts are concluded with individual travel service providers, are either:

• purchased from a single point of sale (a shop, a telephone service or a website), where the traveller has selected those services before agreeing to pay;
• offered, sold or charged at an inclusive or total price;
• advertised or sold under the term ‘package’ or under a similar term;
• combined after the conclusion of a contract by which a trader entitles the traveller to choose among a selection of different types of travel services, such as in the case of a package travel ‘gift box’; or
• purchased from separate traders through linked online booking processes where the traveller's name, payment details and e-mail address are transmitted from the trader with whom the first contract is concluded to another trader or traders, and a contract with the latter trader or traders is concluded at the latest 24 hours after the confirmation of the booking of the first travel service.

The combination of accommodation, transport or the rental of motor vehicles with a tourist service which is not intrinsically part of the former three services (such as a guided tour or concert ticket) may be considered as a package only if the additional service represents at least 25 % of the total value of the trip or is an essential feature of the trip.

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Information obligations and content of package travel arrangements

Pre-contractual information

Before concluding a package travel contract, the organiser and, where the package is sold through a retailer, also the retailer must ensure that the customer receives the form containing the standard information explaining that the contract is for a package travel arrangement and setting out the principal rights of the customer as well as all the information considered to be essential under the relevant legislation. For example:

• The main characteristics of the travel services, such as the travel destination, itinerary, periods of stay, categories of transport, location of the accommodation, meals provided, visits or excursions, language spoken, etc.
• The total price.
• The arrangements for payment or the financial guarantees to be paid or provided by the traveller.
• The minimum number of persons required for the package to take place and the time limit for the possible termination of the contract if that number is not reached.
• Notification that the traveller may terminate the contract at any time before the start of the package in return for payment of a termination fee.

Content of the package travel contract and documents to be supplied before the start of the package

Package travel contracts must be in plain and intelligible language and, in so far as they are in writing, must be legible. The traveller is entitled to receive a copy or confirmation of the contract on a durable medium.

The package travel contract must include, inter alia, the following information:

• the pre-contractual information;
• special requirements of the traveller which the organiser has accepted;
• notification that the organiser and retailer are responsible for the proper performance of all travel services included in the contract and are obliged to provide assistance if the traveller is in difficulty;
• a summary document or certificate giving the name and contact details of the guarantor in the event of insolvency or any lack of conformity;
• information on the traveller’s right to transfer the contract to another traveller.

In good time before the start of the package, the organiser or retailer must provide the traveller with the necessary receipts, vouchers and tickets, information on the scheduled times of departure and, where applicable, the deadline for check-in, as well as the scheduled times of intermediate stops, transport connections and arrival.

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Changes to or termination of the package travel contract

Price increases: The organiser may increase the price of a package only if certain costs increase (e.g. fuel cost). This must be clearly explained in the contract, which must also state that travellers are entitled to a price reduction if there is a decrease in those costs. Changes may be applied up to 20 days before the start of the package. If the organiser proposes a price increase of more than 8 % of the total price of the package, travellers are entitled to terminate the package travel contract without paying a termination fee.

If you are unable to travel, you may:

• Transfer the package to another person, subject to a number of conditions. If you transfer the package, you may be charged a reasonable fee which cannot exceed the costs incurred by the organiser or retailer.
• Terminate the contract in return for payment of a reasonable termination fee, the amount of which depends, primarily, on the date of cancellation.

These rights are independent of any rights you may have under a cancellation insurance policy.

Cancellation by the organiser: in normal circumstances, if the organiser cancels the sale before the start of the package, the consumer is entitled to a refund of all payments made and compensation where appropriate.

Cancellation in exceptional circumstances: in the event of a natural disaster, or if there are serious security problems at the destination which are likely to affect the package, both the organiser/retailer and the traveller may terminate the contract without any termination fee being paid to the organiser or retailer or any additional compensation being paid to the traveller.

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Protection of travellers (alternative arrangements or compensation for damages)

Organisers and retailers are responsible for the performance of all travel services included in the package. If a travel service cannot be provided as agreed, they may have to offer, at no extra cost to the traveller, alternative arrangements. They may also have to pay compensation if the travel services are not of the agreed standard.

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What is a linked travel arrangement?

Linked travel arrangement means at least two travel services purchased for the purpose of the same trip, resulting in the conclusion of separate contracts with each of the individual service providers, provided that the trader:

• facilitates the purchase, through a single visit or contact with its point of sale, of travel services which are selected and paid for separately by the traveller; and
• facilitates the purchase of an additional travel service in a targeted manner, not more than 24 hours after the confirmation of the booking of the first travel service.

The combination of accommodation, transport or the rental of motor vehicles with a tourist service which is not intrinsically part of the former three services (such as a guided tour or concert ticket) may be considered a linked travel arrangement only if the additional service represents at least 25 % of the total value of the trip or is an essential feature of the trip.

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Clear and precise information on linked travel arrangements

The trader must provide the customer with a link to the form containing the standard information explaining that the contract is for a linked travel arrangement and setting out the principal rights of the customer.

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Insolvency protection

Both in the case of package travel and in the case of linked travel arrangements, if the company with which you have booked your holiday goes bankrupt, you are protected by means of a guarantee which may take the form of a fund, insurance or any other mechanism available in the Autonomous Community in which the company is based. The guarantee will cover all the payments made by the traveller and, if necessary, the cost of repatriation if the package or linked travel arrangement include transport.

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