HOTREC supports the European Commission’s efforts to simplify the Package Travel Directive (PTD). However, it argues that the current proposal lacks fairness between consumer protection and hotel sustainability.
According to the Union, the economic viability of hotels must be ensured while safeguarding consumer rights. Otherwise, this could undermine competitiveness and disproportionately affect small businesses.
HOTREC calls on EU legislators to address concerns about liability and enforcement, and to minimise the administrative burden on small and medium-sized businesses, particularly with regard to insolvency protection requirements.
HOTREC’s main concerns about the revised proposal on package travel are:
– The proposed 3-hour package rule fails to bring clarity.
– Advance payment regulations should remain within the context of B2B contracts to avoid cash flow restrictions.
– Requiring hoteliers to make refunds for cancelled services within 7 days is unworkable. HOTREC supports a review of this B2B obligation.
– Vouchers may be a viable alternative to refunds, however it is unreasonable to require automatic refunds after the expiry of the validity period.
“We believe that the proposed revision of the PTD could jeopardise the competitiveness of European package holiday services and negatively affect the entire value chain, affecting small hospitality businesses the most. A revised PTD would lead to an increase in package prices and higher costs for travellers. A European Parliament study highlights that the PTD has already affected prices through the additional costs borne by package organisers (which are passed on to consumers through increased prices). Package organisers and service providers will have to decide whether to absorb the cost increase, affecting their already tight profit margins, or pass it on to consumers, potentially making them less competitive,” HOTREC stresses.
The Association fears that consumers could further refrain from booking package holidays and opt for impromptu holidays at their own risk.
