When is a Package Tour Not a Package Tour

We often hear of problems associated with package tour holidays and customers' attempts to gain compensation. It is important, therefore, to know what is and what is not a package tour for the purposes of working out who is responsible if things go badly wrong.

Fortunately, the European Court has recently given a judgment which clarifies matters. The case involved a family seeking compensation after a Club Med holiday was ruined by a wasp infestation.

The court decided that a package tour is one that includes "tourist services", sold at an inclusive price, where two or more out of transport, accommodation or "other services" are included and where these are arranged at the time of the original sale. This would exclude, therefore, a holiday for which the hotel and flights are booked separately.

In January 2008, new guidance was issued to package tour operators outlining the definition of a package tour.  In this context, a "package" means the pre-arranged combination of at least two of the following components when sold or offered for sale at an inclusive price and when the service covers a period of more than twenty-four hours or includes overnight accommodation:

a) transport;

b) accommodation;

c) other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package, and:

1. the submission of separate accounts for different components shall not cause the arrangements to be other than a package;
2. the fact that the combination is arranged at the request of the consumer and in accordance with his specific instructions whether modified or not shall not of itself cause it to be treated as other than pre-arranged.

 Whether a holiday is a package or not is important from the point of view of protection in the case of the insolvency of the holiday provider or carrier. Where a package holiday is sold an ABTA registered travel agent will carry a bond which will pay for the repatriation of the holiday maker in the event of the insolvency of the tour company. However, where the elements comprising the holiday are sold separately and not as a package, no ABTA bond is required.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.