PTD Open letter

MRS. KATI KIKAS MINISTRY OF ECONOMIC AFFAIRS AND COMMUNICATIONS Tallinn, 26.10.2023. Dear Mrs Ka Kikas, Subject: Concerns over the uneven Revisions of Passengers and Package travellers’ rights Estonian Travel and Tourism Associa on would like to express its concerns about the ongoing revision of the Package Travel Direc ve (PTD), expected to be released on 29 November 2023. Aligned with the objec ves of the Commission’s Incep on Impact Assessment on the PTD, our associa on has long advocated a thorough and joint examina on of the PTD and Regula on 261/2004 on Air Passenger Rights. Par cularly considering the shortcomings exposed by the COVID-19 pandemic within the context of these two legisla ve frameworks, the delays in airlines reimbursing passengers for cancelled flights and the impact these ac ons had on travel intermediaries called for a robust legisla ve response. Unfortunately, over the past months the lack of poli cal ambi on and diverging objec ves of the Directorates General have become clear, jeopardising the poten al for meaningful reform. While the majority of issues concerning passenger protec on that emerged during the pandemic were directly linked to airline prac ces, it is surprising that DG MOVE seems to lean toward imposing minimal obliga ons on airlines in its upcoming passenger rights review. In contrast, DG JUST is poised to recommend more stringent requirements for travel agents and tour operators, despite their limited involvement in the issues faced during the pandemic. The travel intermediaries are par cularly concerned about the inten on of DG JUST to introduce a limita on of pre-payments in the forthcoming revision of the PTD, specifically aimed at package organisers. In our perspec ve, this is unnecessary, as the current Direc ve already provides significant safeguards for travellers in the event of package organizers' insolvency. In contrast, the upcoming review of the passenger rights framework will lack corresponding measures as no limita on of prepayment is foreseen. Even protec ng passengers’ payments against airline insolvency will not be included or might merely be addressed as an obliga on to inform consumers on the availability of insurance (at an addi onal cost) to protect them from this risk. We already communicated, together with other industry and consumer associa ons, about the lack of such products on the market. To make things worse, according to the latest informa on gathered, there are considera ons to narrow the scope of the PTD by excluding loose combina ons sold by airlines via third-party traders (e.g., car rental companies, accommoda on pla orms) from being categorized as linked travel arrangements (LTA). Should the defini on be indeed changed, airlines will be able to sell combina ons of travel services without having to adhere to any of the obliga ons set forth in the PTD, including the more limited LTA retail requirements. This poten al loophole would favour larger airlines that could offer unprotected combina ons and disrupt fair compe on to the disadvantage of smaller intermediaries. In our view, the lack of coordina on and concerted efforts on these two important ini a ves is a missed opportunity and the discrepancies between the two revisions under considera on will only exacerbate the exis ng fragmenta ons. An imbalanced approach could erode a level playing field in the travel industry and ul mately harming consumers by reducing the availability of travel packages due to new burdensome, onerous obliga ons for organisers, par cularly small and medium-sized enterprises (SMEs). Considering the poten al adverse effects these ini a ves may have on smaller businesses, we would welcome the opportunity to discuss our concerns and explore alterna ve solu ons in a mee ng at your earliest convenience. We thank you for your me and considera on. Yours sincerely, Merike Hallik Secretary-General Estonian Travel and Tourism Associa on (ETFL) Tallinn, Estonia +372 5090717 merike.hallik@e l.ee Saatja: <"Kati Kikas"> Saadetud: 26.10.2023 09:11 Adressaat: <"MKM info"> Teema: FW: PTD Open letter Manused: image003.png; MKM kiri 26.10.2023.pdf Palun kiri registreerida ja edastada teadmiseks: Sandra Särav, Marie Allikmaa, Külli Kraner, mina. Terv, Kati From: Merike Hallik <[email protected]> Sent: Wednesday, October 25, 2023 11:27 PM To: Kati Kikas <[email protected]> Subject: PTD Open letter Tere Kati Annan teada, et ECTAA saatis äsja Euroopa Komisjonile (president von der Leyen, volinikud Reynders (JUST) ja Valean (MOVE)) kirja seoses reisipakettide direktiivi käimasoleva läbivaatamisega ja selle tõenäoliste tagajärgedega VKEdele ning konkurentsile reisisektoris, eelkõige lennuettevõtjatega. Olen lisanud ka ETFLi (inglisekeelse kirja), et juhtida ministeeriumi tähelepanu olukorrale. Reisipakettide direktiiv peaks avaldatama 30. novembril koos reisijate õiguste parema kaitse määrusega. ECTAA on koostanud mitmesuguseid teabematerjale, mida saab kasutada riiklikul tasandil. Need on kättesaadavad ka ECTAA veebilehel www.ectaa.org .  Leaflet: Package Travel Directive: How can we make it fit for purpose  FAQ on the Package Travel Directive Revision  Graphic - Limitation of prepayments: Impact on liquidity  ECTAA's position on Package Travel Directive October 2021  Infographic "Why a limitation of package travel prepayments does not work“  Infographic "Limitation of prepayments: views of TUI, Expedia and Air France-KLM Lugupidamisega Merike Hallik peasekretär Estonian Travel and Tourism Association (ETFL) Tallinn, Estonia +372 5090717 [email protected]