TL;DR
- The Government published its Package Travel Regulations consultation response last Sunday
- The proposed exemption for domestic packages without transport? Not happening
- Linked Travel Arrangement Type A will become a full package (more protection for clients)
- Linked Travel Arrangement Type B is being removed entirely (good news for small B&Bs and guesthouses)
- All changes come into effect by June 2026
If you’ve been keeping half an eye on the Package Travel Regulations review, Sunday brought some answers.
The UK Government published its response to the consultation that’s been running since late 2023. And while it’s not a dramatic overhaul, there are a few things worth knowing if you sell UK staycations or domestic packages.
Let’s break it down.
The Big Question That Got a “No”
The proposal that got the most attention was whether domestic packages without a transport element should be exempt from PTR rules altogether.
Picture a Lake District hotel offering accommodation plus tickets to a local theatre. Under this proposal, that wouldn’t have needed PTR-level protections. It would have fallen under general consumer law instead.
The Government decided not to go ahead with it.
The main reason? Defining “transport” turned out to be trickier than expected. Transport isn’t only about getting to and from a destination. It includes transfers, excursions, day trips, and movement between activities. Drafting legislation that covered all those scenarios without creating confusion proved too complicated.
So domestic packages remain fully covered by Package Travel Regulations, with all the consumer protections that come with them.
What’s Useful to Know: Linked Travel Arrangements
Instead of the exemption, the Government is reforming how linked travel arrangements work. If you’ve found LTAs confusing, you’re not alone. They’ve puzzled businesses and consumers since the PTRs came into force.
Here’s the simplified version of what’s changing:
LTA Type A (when clients select and pay for multiple services during a single visit to your website or shop) will become a full package. This means full PTR protections apply. Many agents already treat these situations as packages, so this change mostly formalises what’s already happening.
LTA Type B (when clients book one service and are offered another from a different provider within 24 hours) is being removed entirely.
That second change is particularly helpful for smaller accommodation providers. Under current rules, if a guesthouse emails a client after they’ve booked, suggesting a local boat tour operator, that could trigger LTA Type B requirements. The guesthouse would need to provide insolvency protection for the whole arrangement.
With Type B removed, that guesthouse can share helpful local recommendations without regulatory implications.
The Practical Bit for Agents
If you sell accommodation and experiences as separate items during a single booking session, those arrangements will become packages under the reformed rules from June 2026. You’ll need appropriate insolvency protection in place, whether that’s ATOL for flight-inclusive packages or bonding for non-flight packages.
If you send follow-up emails recommending local activities after clients have booked accommodation, the removal of LTA Type B gives you more flexibility. You can share information without creating regulatory obligations, as long as you’re not facilitating the actual booking.
The key word there is “facilitating.” Providing information about local tour operators is advice. Passing client details to the operator or enabling booking through a link is facilitation, and that still creates obligations under the reformed rules.
One More Change Worth Knowing
The Government is also modifying Regulation 29, introducing a time-limited period for organisers to claim redress from third-party suppliers when packages are disrupted or fail.
This addresses a longstanding challenge where package organisers struggle to recover costs from suppliers. When you’ve already refunded a client but can’t get the money back from a supplier, it creates real cash flow pressure. The change aims to distribute those costs more fairly across the supply chain.
What the Industry Is Saying
ABTA welcomed the response, describing the linked travel arrangement changes as practical steps that simplify compliance while maintaining consumer protections.
ABTOT, which administers bonding for non-flight packages, also supported the reforms, noting that retaining PTR coverage for domestic packages keeps consumer confidence strong.
AITO was less enthusiastic. Head of Industry Affairs Christina Brazier described the proposals as limited to minor tweaks that fall short of what’s needed.
The mixed reactions reflect how difficult it was to find consensus. The 113 consultation responses came from trade bodies, businesses, consumer groups, and legal representatives, all with different priorities.
The Bigger Picture: UK Staycations Keep Growing
These regulatory discussions are happening against a backdrop of strong domestic tourism growth. The UK staycation market is forecast to expand from £32.8 million in 2025 to £59 million by 2035, with compound annual growth of 6.1%.
Cornwall, the Lake District, and the Cotswolds remain favourites. Welsh coastal towns and the Scottish Highlands are gaining popularity. Families are choosing self-catering cottages and lodges. Couples are seeking boutique hotels in quieter settings. Solo travellers are exploring hiking and cycling routes.
For agents building UK itineraries, that growth creates opportunity. Understanding the regulatory framework that governs how packages are sold and protected helps you serve that market confidently.
What to Do Between Now and June 2026
Review how you currently structure bookings. If you sell accommodation and activities as separate items during single sessions, check that your insolvency protection covers these arrangements.
Get clear on your role when recommending local experiences. Sharing information is different from facilitating bookings. Make that distinction clear to clients.
Keep an eye on implementation timelines. Watch for draft regulations and guidance from trade bodies as details become clearer.
And remember: the exemption proposal was rejected. UK packages remain fully covered by PTRs, with all the consumer protections and business obligations that involves.
What This Means in Real Life
Sunday’s announcement won’t transform how you sell UK packages. But it does simplify how linked travel arrangements work while keeping protections that give clients confidence to book.
The fundamentals stay the same. PTRs continue to protect clients buying UK holidays. Agents continue to need appropriate cover for the packages they create. The reforms tidy up some edge cases, but the core rules you already know will evolve modestly rather than being rewritten entirely.
For a sector where regulatory uncertainty creates headaches, that measured approach might be exactly what’s needed.
Agent Advantage Insight
If you currently create LTA Type A arrangements (selling accommodation plus activities in a single session), start reviewing your insolvency protection now. You have until June 2026 to ensure coverage is in place before the changes take effect.
