How to understand the package travel regulations 2018

The Bottom Line

If you combine and sell two or more different types of travel services for the same trip—such as a guided tour plus accommodation, or transport plus a ticket to a major event—you are likely creating a "Package." Under the Package Travel and Linked Travel Arrangements Regulations 2018 (PTR), you are legally responsible for the entire holiday, regardless of who provides the individual services. Most importantly, you must have financial protection in place to ensure customers get their money back or are flown home if your business or your suppliers fail.

What Counts as a Package?

You are considered an "organiser" of a package if you sell a combination of at least two of the following travel services for a single trip or holiday:

• Transport: Such as a flight, coach, train, or ferry journey.
• Accommodation: A hotel, hostel, B&B, or even a campsite.
• Motor vehicle rental: Car or motorcycle hire.
• Other tourist services: These must be a significant part of the trip, such as a multi-day cooking course, guided mountain trekking, or tickets to a major sporting event.

These services must be sold at an inclusive price, advertised as a "package," or selected before the customer agrees to pay to fall under the regulations.

Your Core Legal Duties

The regulations focus on three main areas to protect the consumer. Failure to comply is a criminal offence in the UK and can lead to unlimited fines or prosecution.

1. Financial Protection (Insolvency Protection)

You must provide security that guarantees a refund to the traveller if any service isn't provided because you have become insolvent. If transport was included in the package, you must also pay for their repatriation (getting them home). In the UK, you can generally do this in three ways:

• Trust Accounts: All customer money is held by an independent trustee and is only released to you once the holiday is finished.
• Insurance: You take out a specific insurance policy that covers the cost of refunds and repatriation in the event of your insolvency.
• Bonding: You join an approved trade association (like ABTA) that holds a bond on your behalf.

2. Full Liability for the Trip

Under the PTR, you are the "Organiser." This means if the hotel is sub-standard, the coach breaks down, or the tour guide doesn't show up, you are responsible for fixing it or compensating the customer. It does not matter if it was the hotel's fault; the customer's legal contract is with you.

3. Information Provision

You must provide specific information to the traveller before they book. This includes the itinerary, the total price (including taxes), and details about the financial protection you have in place. You must also provide a "Standard Information Form" which is a legal template that tells the customer exactly what their rights are.

Package vs. Linked Travel Arrangement (LTA)

It is important to distinguish between a Package and an LTA, as the rules for LTAs are slightly different.

Best Practices for New Business Owners

• Check if you need an ATOL: If your package includes a flight, the PTR still applies, but you generally need an Air Travel Organiser’s Licence (ATOL) from the Civil Aviation Authority (CAA).
• Review your insurance: Standard business liability insurance usually does not cover PTR obligations. You will need specialist "Tour Operator Liability" insurance.
• Use the Government Templates: Do not try to write your own information forms from scratch. Use the "Standard Information Forms" found in the schedules of the 2018 Regulations to ensure you use the correct legal wording.
• Consult a specialist: Because the legal risks are high, it is often worth speaking to a travel industry consultant or a solicitor specialising in travel law before taking your first booking.

Remember: The regulations are designed to be "consumer-friendly." If there is any doubt about whether a trip is a package, the courts will almost always side with the traveller.