Package Travel and Linked Travel Arrangements Regulations 2018
What this means for your business
- Applies to
- United Kingdom
- On this page
- 22 compliance obligations, 1 practical guide
What you must do
22 compliance obligations under this legislation.
Insurance 2
Maintain insurance for organiser insolvency
Unlimited fineIf you sell package travel or linked travel arrangements, you must have a UK‑authorised insurance policy that will pay travellers back if your business becomes insolvent. The policy must cover refunds for any unfinished travel services and, where relevant, repatriation and accommodation costs, and travellers must be named as insured in the contract.
Obtain insurance that covers repatriation and accommodation if insolvent
If you sell a travel package that includes passenger transport, you must have an authorised insurance policy that will pay to bring customers back home and, if needed, cover their accommodation should your business become insolvent. The contract you sell to the traveller must state that this cover applies, and you can choose to keep only part of the customer's money in a trust account instead of the whole amount.
Management duties 12
Ensure compliance with organiser obligations for overseas travel packages
If your UK travel business sells packages that are put together by a travel organiser based outside the UK, you must meet the same obligations that apply to the organiser (such as financial protection and information duties). You only avoid this if you can show the overseas organiser already complies with those rules.
Forward traveller complaints to the package organiser promptly
If a customer contacts you – the retailer that sold the package – with any question, request or complaint about the travel package, you must pass that communication on to the organiser straight away. For any legal time‑limits, the date you receive the message counts as the organiser’s receipt.
Hold traveller payments in a UK trust and manage the trust
Unlimited fineIf you sell package‑travel arrangements, you must keep any money the traveller pays (or the reduced amount allowed) in a UK‑based trust owned by an independent trustee. You must pay the trustee’s administration costs, keep any interest for your business, and only release the money back to you when a signed statement and any supporting evidence are provided. If your business becomes insolvent, the trust money will be used to pay the travellers’ claims first.
Inform travellers of transfer fees and provide cost proof
If a customer wants to transfer their booked holiday to someone else, you must tell them any extra charges and show how those charges were calculated. The fees must be reasonable and cannot be higher than the cost you actually incur.
Obtain and maintain a bond for insolvency protection
Unlimited fineIf you organise package travel and rely on an approved body’s reserve fund or insurance to meet the insolvency protection rules, you must secure a bond with an authorised institution. The bond must cover the amount calculated under the regulation (the lower of the maximum payments you hold or at least 10% of expected contract payments) and can only be in force for up to 18 months.
Provide clear contract and travel information on a durable medium
When you sell a package‑travel deal, you must give the traveller a contract that is plain, legible and includes all required details. You also need to provide a copy (or confirmation) of the contract, plus receipts, vouchers, tickets and the full itinerary on a durable medium, and do so promptly and before the travel starts.
Provide prompt assistance to travellers in difficulty
If a customer on one of your package‑travel deals runs into trouble – for example a health problem, lost documents or a disrupted journey – you must quickly give them help. This includes giving clear information about local health services, authorities and consular help, assisting with phone or internet contact, and helping them arrange alternative travel. You can only charge a fee if the problem was caused deliberately or by the traveller’s negligence, and then only to cover reasonable costs.
Provide required pre‑contract information for package travel sales
If your business sells a package travel deal, you must make sure the mandatory pre‑contract information (set out in Regulations 5‑7) is given to the consumer. When you sell through a retailer, either you or the retailer must do it, and you need an agreement on who is responsible. When you sell directly, you must do it yourself.
Provide required pre‑contract travel information and keep it unchanged
When you sell a package holiday you must give the traveller all the information listed in Schedule 1 before the contract is signed, and that information becomes part of the contract. You cannot change it unless the traveller explicitly agrees, and any changes must be communicated clearly before the contract is concluded. If you fail to disclose extra fees, you cannot charge the traveller for them.
Secure a bond for package‑travel insolvency protection
If you sell package travel or linked travel arrangements and want to rely on the insolvency protection rules, you must arrange a bond with an authorised financial institution. The bond must cover a calculated amount (based on expected payments or the cost of repatriating travellers) and can only be in force for up to 18 months. You also need to get the bond amount approved by your sector’s approved body before the bond starts.
Set and justify termination fees for traveller cancellations
If a customer cancels a package holiday before it starts, you may charge a fair termination fee that reflects the time of cancellation and any cost savings you gain. You must either have standard fees set out in the contract or calculate the fee as the package price minus those savings, and you must give a written justification if the customer asks. When extraordinary, unavoidable events affect the destination, you cannot charge a fee and must refund any money paid.
Take responsibility for booking errors caused by your system
If you sell package holidays or linked travel services, you must be liable for any mistakes that arise from your own booking system or from errors you make when arranging the bookings. You are not liable for errors the traveller causes or for events that are unavoidable and extraordinary.
Notifications 1
Notify travellers of price increases and provide calculation
Unlimited fineIf you sell a package holiday, you cannot raise the price after the contract is signed unless your contract specifically allows it and only for certain cost changes. Any allowed increase must be clearly explained to the traveller, with a full calculation, and sent at least 20 days before the holiday starts.
Other requirements 2
Claim compensation from third parties after you pay customers
When you as a travel organiser or retailer give a customer money back or a cheaper price because something went wrong, you can ask the company (e.g. a hotel, airline or activity provider) that caused the problem to reimburse you. In practice this means you have to trace the third‑party that contributed to the issue and submit a claim to recover your costs.
Provide required travel package information before sale
Unlimited fineBefore you sell a package holiday you must give the customer all the information set out in the relevant Schedules – either on your website (using hyperlinks) or in paper/email form if hyperlinks aren’t possible, and also extra details for certain combined travel services. The information must be clear, easy to read and legible. Failing to do so can lead to a criminal offence and an unlimited fine.
Payments and fees 1
Refund traveller within 14 days of contract termination
If a package travel contract ends – whether the traveller cancels, the organiser cancels, or a refund is otherwise required – you must calculate any amount the traveller is owed (after any permitted termination fee) and pay it back promptly. The payment must be made without undue delay and no later than 14 days after the contract is terminated.
Offences and prohibitions 4
Cause another to commit a package‑travel offence
Unlimited fineIf an offence under the Package Travel Regulations (for example a failure to give required information or a breach of a contract) happens because of something done or omitted by a person acting for your business – such as a director, manager, secretary or partner – that person (and the business itself, if it is a company or partnership) can be prosecuted as well, even if they were not the original offender. A conviction carries the same penalties as the original offence, which can include an unlimited fine and/or imprisonment.
Fail to comply with linked travel arrangement requirements
Unlimited fineIf you are a trader who arranges linked travel packages (including overseas traders targeting the UK) and you do not provide the required insolvency security or give the prescribed pre‑contract information, you commit a criminal offence. On conviction you face an unlimited fine – either a summary fine or a fine on indictment – but no prison term.
Fail to provide insolvency security for travel packages
Unlimited fineIf your business organises package travel and does not put in place the required security to protect travellers if you become insolvent – covering refunds and any repatriation costs – you commit a criminal offence. On conviction you face an unlimited fine, either on summary conviction in the magistrates' court or on indictment in the Crown Court.
Make a false statement under regulation 23(6)
Unlimited fineIf your business, as the organiser of a package travel or linked travel arrangement, gives a false statement required by regulation 23(6), you commit a criminal offence. On conviction you face an unlimited fine – either in the magistrates’ court (summary) or in the Crown Court (indictment). There is no custodial sentence.
Penalties for non-compliance
9 penalties under this legislation. 9 carry an unlimited fine.
Maintain insurance for organiser insolvency
Unlimited fine
Hold traveller payments in a UK trust and manage the trust
Unlimited fine
Obtain and maintain a bond for insolvency protection
Unlimited fine
Notify travellers of price increases and provide calculation
Unlimited fine
Provide required travel package information before sale
Unlimited fine
Cause another to commit a package‑travel offence
Unlimited fine
Fail to comply with linked travel arrangement requirements
Unlimited fine
Fail to provide insolvency security for travel packages
Unlimited fine
Make a false statement under regulation 23(6)
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
39 classified provisions from this legislation.
Duties 19
- s.4 Information duties and “the relevant person”
- s.5 Information to be provided by the relevant person before concluding a contract information provided
- s.6 Binding character of information provided before the conclusion of the contract
- s.7 Content of the package travel contract and other documents The relevant person
- s.9 Transfer of the package travel contract to another traveller
- s.10 Alteration of the price
- s.12 Termination of the package travel contract by the traveller
- s.14 Refunds in the event of termination
- s.17 Possibility of contacting the organiser via the retailer
- s.18 Obligation to provide assistance
- s.20 Bonding bond entered into pursuant
- s.21 Bonding where approved body has reserve fund or insurance bond entered into pursuant
- s.22 Insurance The organiser
- s.23 Monies in trust the organiser
- s.24 Insurance where monies are held in trust the organiser
- s.27 Specific obligations of the retailer where the organiser is established outside the United Kingdom
- s.28 Liability for booking errors errors due
- s.29 Right of redress third parties which contributed
- s.31 Enforcement authority such authority