ECTAA discussed with the European Parliament issues relevant to TOs' businesses

European Parliament and representatives of the European Commission to discuss topical issues relevant to travel agents’ and tour operators’ businesses. The event, held at the European Parliament on 28 November, was sponsored by Mr. Said El Khadraoui, MEP.

A host of legislative measures are currently being discussed and decided upon in the European Parliament that have an impact on travel agents and tour operators. The event organised at the European Parliament was the opportunity for ECTAA to discuss with high-level representatives of the EU institutions two very important legislative initiatives that will be adopted shortly: the proposals for the revision of the Package Travel Directive and Air Passenger Rights legislation. Both will have a huge impact on the travel and tourism industry. ECTAA therefore called on the EU decision-makers to find an equitable balance between the rights and obligations of both consumers and enterprises. But more importantly is the need for a level-playing field among all market players, especially as regards the package travel Directive.

A level-playing field is unfortunately today not guaranteed. For example, while tour operators have to provide a financial guarantee to protect their customers against their own financial default, no such obligation exists for airlines. The European Parliament has recognised this lack of consumer protection in its recently adopted report on passenger rights in all modes of transport. This was also recalled by Mr. Georges Bach, MEP, in his speech to the ECTAA Members. Unfortunately, the European Commission is not planning any legislation in this respect.

Said President of ECTAA, Boris Zgomba: “The next year will be very important for travel agents and tour operators, as it will determine the conditions for selling traditional package holidays and the ability to compete with other market players that escape the scope of the revised legislation”.

Recognising the need for the upcoming revisions, the ECTAA President also cautioned about over-regulation, adding: “in all legislative measures a right balance needs to be struck between rights and obligations of consumers and businesses respectively.”

Topics in the European Parliament affecting travel agents and tour operators

Upcoming Revision of the Package Travel Directive
Directive 90/314 on package travel, package holidays and package tours is of major importance for package travel organisers in the EU. ECTAA is in favour of the revision of the Package Travel Directive (PTD) as it is essential to adapt it to new and upcoming market developments and:
Ensure that any consumer across the EU benefits from the same level of protection, when purchasing any combination of travel services, irrespective of the distribution channel.
Preserve and foster the competitiveness of the industry, through an equitable balance between the rights and obligations of both consumers and enterprises and ensuring an indispensable level playing field between all market stakeholders.
Upcoming Revision of Air Passenger Rights
A legislative proposal to revise Regulation 261/2004 is expected at the end of 2012. ECTAA supports capping costs for assistance in extraordinary circumstances and extending the time trigger compensation in case of delay from 3 to 5 hours. Existing rights regarding luggage are appropriate and should not be modified. In order to improve air passenger rights and ensure a level playing field with package travel organisers, we strongly support an obligation for airlines to protect passengers in case of airline insolvency. Passengers should not lose the benefit of their ticket if they do not use one segment only.

There is besides a need to better address transparency of air ticket distribution, through better enforcement of Regulation 1008/2008 and possibly revisions, to include non-optional operational costs in air fares, have optional ancillary services published and bookable in the same channel as the fare, prevent discrimination in access to fares based on the distribution channel and ensure the transparency of distribution channels that have developed outside the scope of Regulation 80/2009 on computerised reservation systems. The airline initiative IATA New Distribution Capability will also need to be carefully assessed.

Review of the Airport Slot Allocation Regulation Proposal
The changes proposed by the Commission to the current rules on length of slots series and slot utilisation threshold have a detrimental impact on leisure travel and typical tourist destinations, as they do not take account of the seasonality of leisure travel. Airlines would either have to stop flying at the beginning or end of peak tourist seasons or fly empty planes.

Revision of the Insurance Mediation Directive
Currently, professionals who intermediate travel insurances are not subject to Directive 2002/92. However, under the proposal to revise Directive 2002/92, travel agents and tour operators who mediate in travel insurance would be subject to a new declaration procedure and requirements of knowledge and ability, good repute, professional indemnity insurance... ECTAA is not in favour of that declaration procedure and calls for the maintenance of the exemption of intermediation in travel insurance.

Revision on the Professional Qualifications Directive
ECTAA is favourable to the proposal aiming at modifying Directive 2005/36 on professional qualifications, because it will contribute to the mobility of tourist guides, which is fundamental for package travel organisers. ECTAA strongly hopes this legislation will permit an easier recognition of their qualifications as it takes into account the seasonal and “cross-border” aspects of the tourism industry’s professions.

Directive Proposal on Use of Passenger Name Records by Member State Authorities
Considering costs and disruptions that could be caused to our industry, ECTAA would support the rejection of the proposal. In case an EU PNR system is introduced, ECTAA recommends limiting the scope to data captured electronically by air carriers in their normal course of business and to flights between the EU and third countries. Information should be provided to passengers once at the time of booking, without this obligation lying expressly on travel agencies and ticket sellers.

New EU Framework on Personal Data Protection
The practical impacts of obligations on undertakings must be carefully considered, notably information obligations and the requirement to have a data protection officer. In regard of PNR transfers to third countries, the travel industry should not be put in untenable positions, where third countries require passenger data in conflict with EU data protection legislation.

Implemantation of the Tourism Communication
ECTAA is supportive of all measures that enhance the sustainability and competitiveness of the European tourism, including combating seasonality, uptake of ICT in tourism, etc.

Upcoming regulation Proposal for a European Tourism Quality Label
A legislative proposal is foreseen before the end of the year. ECTAA has doubts whether the added value for businesses and consumers justify the expenditures required in creating a pan-European consumer label. In any case, the label should be voluntary and focus on quality only.

Upcoming Review of the EU Visa Code
European tourism will gain a lot from the Commission’s plan to streamline and shorten the visa application procedure, simplifying the application form, improving consular organisation and cooperation, etc, which aim at facilitating travel for legitimate travellers, such as tourists.