A comparative analysis of the package travel directive 2015/2302 with particular reference to the effect of COVID-19 on travel agents

Abstract

This study focuses upon the refund obligations of the travel agent in cases of “unavoidable and extraordinary” obligations as per Article 12 of Directive 2015/2302 on package travel and linked travel arrangements and the effect of these obligations upon the solvency of the same travel agent. Hence, insolvency protection obligations related to each travel agent as under Article 17 of the same Directive are pertinent. In sum, the study aims at focusing on the position of the travel agent vis-à-vis both these obligations and on COVID-19’s ramifications thereupon in the context of both Subsidiary Legislations 409.18 and 409.19 and the Directive itself. The author shall question the adequacy of these obligations, which obligations may disadvantage the travel agent. Significantly, in regard to the refund obligations, whilst the consumer is granted refund rights upon termination of a package travel contract due to unavoidable and extraordinary circumstances, the travel agent is obliged to cover all expenses arising therefrom. This obligation arises even if the travel agent is not reimbursed by suppliers and albeit blameless therefor. Moreover, the author shall question the equitableness of the insolvency mechanism adopted in the Maltese Insolvency Fund under S.L 409.18. The author aims at showing the apparently discriminate fixed contribution imposed upon each Maltese travel agent, irrespective of its size or turnover. In addition, the author shall tender recommendations for the amendment thereof by comparative analysis of insolvency mechanisms adopted in select EU Member States. The study shall also briefly analyse other select obligations or lack thereof upon other travel and tourism market players which affect the travel agent’s financial position especially during the mass cancellations characterising the COVID-19 outbreak. Indeed, where necessary, the author shall also tender recommendations to this end, with the underlying intention of ameliorating the currently underprivileged position of the travel agent.