European Cruise Council Conference

Update on the Revision of the Package Travel Directive

14 September 2010

Jens ThommesenUnit A3 – Consumer and Marketing LawDG Justice, European Commission

A3 –Consumer and marketing lawDirectorate-General Justice

The review of the PTD• 2007 – First consultation on the review of the Directive• Jan –Oct 2009 –"Study on Consumer Detriment in the

area of Dynamic Packages" (more than 1 billion € annually)

• August 2009- Launch of the Impact Assessment Study• 26 Nov 2009- 7 Feb 2010 – Second round of public

consultation• 22 April 2010– Stakeholder conference• DG MOVE – Parallel IA on insolvency protection –

standalone airline tickets

NEXT STEPS:

• Finalisation of the Impact Assessment• Proposal planned first half of 2011

A3 –Consumer and marketing lawDirectorate-General Justice

Public consultation

• Clear support for updating the Directive and also to clearly cover dynamic packages : both “expedia-type” and “Click-through” packages;

• For summary, see EC web pages

A3 –Consumer and marketing lawDirectorate-General Justice

Is the cruise industry covered?Definition of a 'package‘: “the pre-arranged combination of not fewer than two of the following 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.”

A3 –Consumer and marketing lawDirectorate-General Justice

81%78%

64%

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

MS Authorities IndustryAssociations

Companies Consumerorganisations

Sources: Results of the public consultation, 2010

Scope of the PTD – cruises

Strong support of all stakeholders for clearly including cruises under the scope of the PTD. Only consumer organisations in support of including transportation which includes accommodation under the scope of the PTD.

33%

9%12%

63%

0%

10%

20%

30%

40%

50%

60%

70%

MS Authorities IndustryAssociations

Companies Consumerorganisations

Scope of the PTD – transportation which includes accommodation (e.g. overnight boat/train trips in a cabin)

A3 –Consumer and marketing lawDirectorate-General Justice

Policy Objectives

Overall objective: to contribute to the better functioning of the Internal Market and achieve a high level of consumer protection

General objective 1

Improve the functioning of the Internal Market

Related specific objectives

• eliminate regulatory fragmentation and obstacles to cross-border trade;

• reduce administrative costs for businesses;

• ensure a level playing field.

General objective 2

Achieve a high level of consumer protection

Related specific objectives

• Widen consumer protection and reduce consumer detriment by addressing new market developments;

• ensure that consumers are aware of their rights when purchasing package holidays and that they are provided with the relevant information.

A3 –Consumer and marketing lawDirectorate-General Justice

Policy OptionsNon- legislative policy options, e.g.

• Status Quo• “Package travel label”- add on-option - an obligatory logotype to

be presented to consumers when purchasing a package travel;• Repeal of the Directive, industry self- regulation;

Legislative policy options:

• Minimum approach – Clarification of the scope and updating definitions, also taking into

account ECJ rulings– An update of the information requirements;– Clarification of the obligations of the professional parties

• Medium approach –minimum approach and extension of the scope of the Directive to cover "dynamic packages" purchased on the internet from different sites which are clearly linked (so-called "click through" packages)

• “Travel Directive”- maximum approach and extension of the scope to other standalone travel products i.e. car rental, accommodation and seat-only as requested by some consumer organisations

A3 –Consumer and marketing lawDirectorate-General Justice

Thank youfor your

attention

Jens ThommesenUnit A3 – Consumer and Marketing LawDG Justice, European Commission