CMA’s Peter Hill issues vital regulatory reminder to travel industry

Friday, January 12, 2024

The Competition and Markets Authority (CMA) functions as the primary competition watchdog in the UK, focusing on safeguarding businesses and consumers within the travel sector by enforcing regulations. These regulations originated from investigations conducted by the CMA’s predecessors in the past. The key points include:

1. If you are a tour operator selling foreign package holidays, you are prohibited from preventing travel agents from offering additional incentives to customers interested in purchasing your holidays. This restriction applies to both formal agency agreements and informal arrangements. For more details, refer here.
2. Tour operators cannot instruct travel agents to provide incentives on their holidays to match those offered by competitors. For instance, demanding a travel agent to discount your holidays to match competitor discounts is not allowed. For more details, refer here.
3. If a business functions as both a travel agency and a tour operator, holding a market share exceeding 5% in the UK, it must transparently communicate the connections between the travel agency and tour operator segments when customers make bookings. This applies to a limited number of large businesses in the sector. For more details, refer here.
4. Travel agents and tour operators cannot impose additional charges on customers who choose not to purchase holiday insurance directly from them. For more details, refer here.

Businesses in the travel agency or tour operator sector should ensure compliance with the aforementioned rules applicable to their operations.

These rules have been in effect for several years, and further information can be obtained from ABTA if needed.

It’s important to note that consumer laws, both specific and general, are applicable to travel contracts. The CMA has issued an open letter to all package holiday companies to remind them of their legal obligations.

« Back to Page

• ABTA Insights from Future Travel Coalition’s Travel Industry Survey to Shape Pre-Election Discussions

• UK Government Sets 2030 Target for 10% Sustainable Aviation Fuel in Outbound Flights

• ABTA and Seasonal Businesses in Travel Support Youth Mobility Agreement Between United Kingdom and European Commission

• ABTA urges travellers to strictly follow current hand luggage rules

• ABTA and RHA Join Forces to Strengthen Coach Travel Industry Benefits