IRISH TOUR operators want to limit customers' rights by restricting their entitlement to compensation and allowing for last-minute changes in the cost of package holidays.
The Irish Tour Operators' Federation is seeking the right to raise the price of package holidays right up to the point of departure in cases where air travel and other costs rise subsequent to booking.
At present, EU regulations prohibit tour operators varying the price of holidays within 20 days of the departure date. Before this period, they can only change prices when fuel prices, airport fees or exchange rates change and this must be stated in the contract.
However, the federation has told the EU Commission the 20-day rule is out of date and should be removed when the EU package travel directive is revised. It says operators need greater flexibility to deal with price variations and says low-cost airlines are not subject to the same restrictions.
It also says consumers should not be entitled to compensation in cases where holidays are cancelled because too few people have signed up; they would, however, be entitled to a refund. Consumers should bear the responsibility of ensuring their passport, visa, insurance and inoculations are adequate for their holiday and the tour operators should have no obligation or liability where problems arise.
In a submission to the commission, the federation complains that the directive, because it is designed to protect consumers, does not create a level playing pitch between the rights of tour operators and of consumers. It says the protection of consumers should be achieved by "balanced and proportionate" regulations which allow tour operators to do business without being subject to objectives that are not clearly defined. "Organisers should not have to achieve perfection and should not be subject to unduly onerous obligations beyond what is fair and reasonable," it says.
The submission also criticises the "blatant imbalance" between the regulation of tour operators and airlines. It claims the airlines enjoy a significant competitive advantage because they operate outside the scope of the directive while operators are subject to its rules.
It says the internet has changed the travel market radically by allowing consumers to create "dynamic" holiday packages composed of different elements provided by different companies. But whereas a tour operator has overall liability for all the elements of a traditional package, the liability of an airline, car hire company, etc in a dynamic package is limited to the service it provides. It says such dynamic packages should be included in the scope of the directive.
