Insurers: EU’s Package Travel Directive review must strike the right balance


Europe’s insurers have reiterated their support of the EU’s goal of protecting travellers and its efforts to make the Package Travel Directive simpler and more effective. Nevertheless, in its response to a European Commission consultation, the insurance industry argues that the original rules regarding insolvency protection are clear, unambiguous, and allow flexibility for national specificities. The revision should therefore focus on striking the right balance between the reinforcement of passenger rights and the protection of travel organisers from bankruptcy.

Whilst noting that the European Commission’s proposal is a step in the right direction, Insurance Europe proposes a number of areas which could be improved if the revision of the Directive is to reach its goals.

These include:

  • it is unnecessary to strengthen the requirements regarding insolvency protection as the existing regulatory framework and insolvency protection for travellers sufficiently addresses this need;
  • the revised PTD should define a common approach that provides for clarity in terms of the retailers’ insolvency protection, thereby enabling national specificities of the travel industry to coexist within the single market;
  • it is key to take note of the differences between Member States in terms of the approach taken to the insolvency protection of vouchers;
  • if insolvency protection is extended to vouchers, it should be limited to vouchers that meet the legal requirements under the revised PTD.