The National Association of Travel Agencies (ANAV) warned today about the “threat” posed by the new Package Travel Directive to Portuguese agencies, calling for “proportional and financially viable” rules.
The European directive aims to protect consumers purchasing package holidays, and its new rules following the recent revision were highlighted by the ANAV in a statement, as they have now entered consideration by the Consumer Protection Committee since Thursday.
“The Internal Market and Consumer Protection Committee (IMCO) has expressed support for these changes, but ANAV – the National Association of Travel Agencies – brings attention to the dangers this new regulation could pose for SMEs [small and medium-sized enterprises], which constitute the majority of national travel agencies,” the statement noted.
Key concerns include the “requirement for financial guarantees for all received amounts (even outside peak season),” which ANAV believes “could increase the cost of packages, especially for SMEs, and alter the landscape of the Portuguese Travel and Tourism Guarantee Fund (FGVT),” as well as “the new ‘package’ definition based on bookings within 24 hours,” which could “cause operational disruptions and confusion among operators and consumers.”
The association also points out that the “absence of a unified and general pre-payment limit within the EU could lead to legislative fragmentation and affect companies’ business in different countries,” that “enhancing the right to cancellations without penalty transfers additional risk to operators, exposing them to losses even after paying suppliers,” and that “the mandate for cash refunds within 14 days, even when the client accepts ‘vouchers,’ creates significant cash flow pressures, particularly during crises.”
ANAV acknowledged several positive aspects of the new regulations, such as “the elimination of the confusing Linked Travel Arrangement (LTA) concept, which caused legal and practical uncertainty in the sector,” and the exclusion of business travel from the directive’s scope, “sparing companies from unnecessary obligations in corporate services.”
Further positives for ANAV include the decision not to impose a uniform pre-payment limit, and the fact that the new directive could “increase consumer confidence in the travel agency channel, benefiting the organized sector.”
“This revision partly moves in the right direction, but it is crucial that the final text properly balances traveler rights with the sustainability of agencies. Portuguese companies need clear, proportional, and financially viable rules,” emphasized ANAV President Miguel Quintas, affirming that the association will monitor the negotiation process between the European Parliament and the Council of the EU.
ANAV was established during the COVID-19 pandemic upheaval, “to find effective solutions for the needs of its members regarding state and commercial support,” and its agenda has “evolved in line with new market challenges.”
