Selling package travel or linked travel arrangements
You have additional obligations when selling package travel or if your offer is part of a linked travel arrangement. For example, you need to take guarantee measures. And you have more responsibilities. These rules apply to sales in the entire European Union (EU).
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Differences between package travel and linked travel arrangements
Package travel and linked travel arrangements last at least 24 hours or consist of at least one night. And they consist of at least two of the following elements:
- Transport such as a flight or train journey
- A rental vehicle such as a car or motorcycle
- Accommodation such as a hotel room or apartment
- A tourist service such as a spa treatment, sports equipment rental, or admission to a sports game or amusement park
The most important difference is the way in which you sell the trip: under a single contract or under multiple contracts.
Package travel involves a single contract
- You sell the combination as a single trip, for example as a package, an all-inclusive, combination trip, or an all-in-arrangement.
- Your customer selects different components, and pays one total price. For example, by placing a single order in your online store or making a single booking through your travel agency.
- Your customer pays for one trip first, and then selects the components.
Linked travel arrangements involve multiple contracts
- Your customer takes out different travel services from you, and pays for these separately, for example, by placing multiple orders in your online store, or making multiple bookings through your travel agency.
- Within 24 hours after a booking, your customer books a travel service with another provider through an offer from you, for example, after the confirmation of a flight, you send an email with links to nearby hotels.
Guarantee measures
Guarantee measures are mandatory in the following situations:
- You sell a package travel contract.
- Your service becomes part of a linked travel arrangement. For example, you sell an airline ticket, and within 24 hours, your client books a rental car through a link sent by you.
This means that customers get their money back and get back home again. In that context, participate in a compensation fund.
Duty of information with regard to package travel
Prior to the booking, you need to give customers the following information:
- The fact that it is a package travel contract
- The fact that you are responsible for the proper performance of the trip
- The fact that you have taken guarantee measures in case you go bankrupt
Use the European standard information form for package travel contracts:
- Provide part A if you sell online.
- Provide part B if you sell in any other way.
And you must provide all other required information about the purchase such as:
- The key characteristics of the trip (destination, modes of transport, other services)
- Your name, address, and phone number
- Price and date of payment
- Ability to cancel as well as insurance options
- Travel documents that are required
- Vaccinations or prescription drugs that are needed
- Minimum number of participants (if any)
Liability for package travel
You must ensure that the package takes place as agreed upon and in a manner in which consumers can expect it to take place, for example, on the basis of the information that you provide online, in your brochure or in the store.
Otherwise, you will need to solve the problem and pay the costs. Sometimes you also pay a compensation.
In any case, make sure you have:
- An emergency number where you can be reached 24/7
- A complaints procedure
Modifying a package travel contract
In case of problems, you can modify a package travel contract on three conditions:
- In the event of exceptional circumstances, for example the hotel has burned down.
- It has been laid down in your general terms and conditions that you can modify the package travel contract in such exceptional circumstances.
- You inform travelers that such an exceptional circumstance has emerged.
Consumers may decline a minor modification if it inconveniences them too much.
With major modifications, you will have to let consumers choose:
- Accept: if the package becomes worse as a result of such a modification, the consumer will be refunded the difference in value.
- Decline: you may annul the package travel contract. The consumer will then get a full refund of the original amount plus a compensation.
Example
A substitute destination is a major modification that your customers can accept or decline. Key elements of this trip must be the same as those of the trip that travelers booked. Keep their expectations in mind. Is the place similar? Is the holiday home the same size? Does the hotel room have a sea view, too? Are travelers able to do the same things in the new place? Does the holiday park have a pool as well? And do you take personal circumstances and wishes into account?
Cancellation by consumers
Consumers can cancel their package travel contracts free of charge in these situations:
- Something happens at the holiday destination or with the transport en route to that destination that has major consequences for the trip. And consumers could not have known this when they booked the trip. For example, it has become unsafe all of a sudden.
- At the holiday destination, there are health risks. And consumers could not have known this when they booked the trip.
You may charge cancellation fees in the case of cancellations for other reasons. These fees can be no more than 100% of the total amount of the trip, depending on the time of cancellation. Include this in your general terms and conditions as well as in the mandatory information prior to the purchase.
Changes by consumers
A consumer can transfer their package travel contract to someone else without reason:
- If they notify you thereof no later than 7 days prior to departure
- If the other individual meets the requirements for the trip (for example, the age requirement for a youth trip)
You can charge the actual costs, if you can prove that you incur those costs.
If consumers wish to change something else, you can decide whether or not this is allowed. And you can charge a fee for this.
Changes to the price of the package travel contract
You can pass on price increases in exceptional circumstances only. You can do so on five conditions:
- The increasing costs are related to transport, fuel prices, taxes, or exchange rates.
- If these costs go down, you will also pass on the price decreases.
- You can pass on any price increases no later than 20 days prior to departure.
- You will send in writing (for example by email or by regular mail) the price increase, calculation, and the reason for the price increase.
- These provisions are included in your contracts.
Consumers can decline increases of more than 8 percent of the total amount. In that case, you will need to pay back the total amount of the trip.
You can only charge administrative costs for paying back a price decrease, if you can prove that you incur such costs. This is prohibited for price increases.
Compensation for package travel
It can be reasonable to compensate travelers for a bad travel experience, for example, if you failed to inform them prior to the booking that there would be noise due to renovations. Or if consumers book a five-star hotel with a pool, but then end up in a two-star hotel with no pool.
Compensation is not required if you can prove that you are not to be blamed for the bad travel experience, or if you annul the package travel contract:
- Due to force majeure, such as natural disasters, extreme weather conditions, or war
- Because you do not reach the minimum number of participants that you mentioned in advance
Duty of information with regard to linked travel arrangements
Prior to the booking, you must explain the following to customers:
- That it is a linked travel arrangement
- That each service provider is liable for their part of the trip
- That you take guarantee measures for your part of the trip in case you go bankrupt
Use the EU standard information forms for linked travel arrangements.
- Provide part A when selling return tickets online
- Provide part B when selling one-way tickets, rental vehicles, accommodations or tourist services online
- Provide part C when selling one-way tickets, rental vehicles, accommodations or tourist services offline
- Provide part D if, after the booking, you give customers recommendations about providers of return tickets
- Provide part E if, after the booking, you give customers recommendations about providers of one-way tickets, rental vehicles, accommodations, or tourist services
If you fail to offer this information, your trip is considered a package travel contract according to the law. In that case, you can be held liable for all elements of the trip.
In addition, you also provider all other required information about the purchase.