Draft Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026

Nesil Caliskan Excerpts

Wednesday 15th April 2026 General Committees

[The Comptroller of His Majesty’s Household (Nesil Caliskan)]

I beg to move,

That the Committee has considered the draft Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026.

I cannot tell you, Mr Twigg, how very delighted I am to be opening this debate. The draft regulations were laid before the House on 2 March. I am grateful for the opportunity to set out why they matter, why change is needed and how the Government’s proposals strike the right balance between protecting consumers and supporting a successful travel sector.

As I think all hon. Members would recognise, the travel sector plays a vital role in the lives of millions of people across the UK. A holiday is often the most significant discretionary purchase a family makes in a year, and our constituents will often spend many weeks saving for it. Holidays are a source of joy, support people’s wellbeing, bring people together and help families to explore new places in the UK and overseas. The sector is also economically significant, supporting around £58 billion of the UK’s economic output and more than 1 million jobs.

Package holidays remain a central part of the market, and the UK package holiday sector alone was valued at around £11 billion in 2022. From high street travel agents to airlines, accommodation providers and small domestic tourism businesses, package holidays are a central part of the market. Each year, around 15 million to 20 million people in the UK take a package holiday, often choosing them over other types of travel because of their added convenience and protections. The Package Travel and Linked Travel Arrangements Regulations 2018 are the cornerstone of consumer protection in the sector, and the changes we propose will support businesses to thrive and grow while ensuring robust consumer safeguards.

The package travel regulations exist to make the market work effectively. They give consumers confidence when they are paying for travel in advance, often months before departure, and give businesses a clear framework in which to operate. In practical terms, the regulations provide a framework of financial protection if a company becomes insolvent, require clear information to be given before booking, set out responsibilities if something goes wrong during a holiday, and protect consumers from unexpected price rises after a booking has been made. Those protections matter both to people and to the industry, but they can only work well if they are clear, understood and proportionate. [Interruption.] Do I continue, Mr Twigg?

[The Chair]

You may continue.

[Nesil Caliskan]

An additional pressure has just entered the room.

Why and what changes are needed? Over time, it has become clear that parts of the current framework are not working as well as intended and are creating confusion for consumers, as well as unnecessary complexity for businesses. Having engaged extensively with a range of stakeholders across industry and consumer groups, we have prioritised a number of targeted reforms to support both consumers and traders.

First, we will remove the category of linked travel arrangements altogether. Currently, those exist as looser arrangements than holiday packages that require businesses to take out insolvency protections. However, there is clear evidence that they are not achieving their purpose. Many consumers do not understand when they are protected and when they are not, and many businesses struggle to understand exactly what their obligations are. That uncertainty benefits no one. It can undermine consumer confidence, increase the number of disputes and place unnecessary burdens on businesses, especially small operators.

Our changes will mean that, in the future, when consumers make bookings in circumstances that closely resemble a package—such as booking multiple travel services through the same trader in a single visit—they will now receive a full package of protections. That will align the law more closely with how people understand their bookings in practice and will strengthen consumer protection. At the same time, we will reduce burdens on businesses that simply facilitate a later booking of a second service within 24 hours. That will allow, for example, domestic tourism businesses to refer customers to one another without triggering wider obligations, supporting collaboration and growth while ensuring that consumers remain protected under wider consumer law.

Secondly, recognising the complex set of relationships that are required to organise a package holiday, we will introduce new provisions to clarify requirements around refunds and redress for businesses working with third parties. When services are cancelled, travel organisers will now benefit from refunds from those third parties within 14 days, bringing their rights of refund in line with those consumers. We will also update provisions to give organisers greater clarity about their ability to obtain redress from third party suppliers. That will help ensure that financial risk sits more fairly across the supply chain.

Let me turn to the impact on consumers and businesses. Strong and consistent protections build consumer confidence to book package holidays, which supports demand and benefits compliant businesses across the travel sector. For consumers, the changes will make the regulations clearer and easier to understand by removing the confusing linked travel arrangements category and clarifying when package rules apply. Clearer rules reduce disputes and uncertainty, helping consumers to book with confidence and reinforcing trust in the travel market. Consumers return to businesses that treat them fairly, creating growth that supports the economy.

For businesses that provide package holidays, the proposals reduce unnecessary complexity and support more straightforward compliance. At the same time, clarifying the right to redress from third party suppliers helps to ensure that costs fall to where failures occur, ensuring a fairer distribution of financial risk. That makes it easier for businesses to plan, manage cash flow and work collaboratively across the sector. Subject to parliamentary approval, the new regulations will commence in April 2027, to allow some time for travel operators to adapt their approach for the new arrangements.

In summary, the regulations underpin the complex but vital relationship between consumers and travel businesses. Consumers rely on businesses to deliver holidays that are often paid for well in advance. Businesses rely on consumer confidence to invest, operate and grow. The regulations help that relationship to function by setting clear rights and responsibilities on both sides.

The changes we are making preserve the core bargain—strong, trusted consumer protections alongside a framework that is workable and proportionate for business. The reforms demonstrate the Government’s commitment to maintaining strong consumer protections, while also reducing unnecessary regulatory burdens, to create an environment where travel businesses can thrive, contributing to economic growth across the county. I commend the regulations to the Committee.