package holidays, LTAs only provide insolvency protections. This confusion extends to travel organisers themselves, as evidence suggests that organisers may not realise that they have created an LTA, or the obligations they owe to/ protections enjoyed by consumers under an LTA. LTAs do not benefit from the Regulation 15 protections that apply to package holidays. Regulation 15 holds the package holiday organiser responsible for any lack of conformity during the performance of a travel service forming part of the package. As things stand, consumers of LTAs are at risk of having to rely on alternative means of redress should a problem arise, notably in any claim for personal injury damages following an incident while on holiday. The UK government’s consultation notes that LTAs are confusing, rarely used and challenging to enforce, a position that garnered resounding agreement across industry stakeholders responding to the consultation: 83% of respondents wanted to see fundamental reforms to LTAs. The DBT concluded that: “…LTAs are complicated, poorly understood, and pose significant challenges for both consumers and the travel industry. A key concern was that consumers often believe they have protections that do not exist under LTA arrangements (LTAs – unlike packages – do not impose liability for performance of the holiday on the organisers). This position was echoed in respect to accountability when problems arose, with ambiguity over “responsibility for delivery of services and the resolution of complaints, particularly where multiple providers are involved” creating confusion for traders. Additionally, there was a perception that LTAs are not actively offered as a product, but instead result from specific sales practices employed by traders. Those actively selling them tended to be larger businesses, such as airlines, who tended to engage with Type Bs.” In a significant win for consumers and a major step towards simplification for the package travel industry, the UK government proposes to legislate as follows: • Type A LTAs will be absorbed into the definition of a package. The proposed reform means that a wider range of holidays will benefit from the Regulation 15 liability provisions for lack of conformity, notably providing certainty to victims of serious injury that occurs during the provision of services forming part of a package holiday. • Type B LTAs will be removed entirely. With the EU also contemplating reforms to LTAs, there is broad consensus that the definition must be simplified. However, there is now likely to be increased divergence between the UK and EU. While the EU also proposes 8 CHRISTOPHER DEACON
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