The Commission is seeking to extend the basic cover afforded by the 1990 Package Travel Directive on information, liability for substandard services and protection for insolvency to “dynamic packages”, where consumers create their own packages, often online, through one website or different partner websites.

Around 23 per cent of EU consumers now book dynamic packages, and around 67 per cent believe, mistakenly that they are protected. Following a recent spate of airlines going bust, the consultation paper also seeks to extend basic insolvency protection for consumers across the board, including for standalone airline tickets.

The 1990 directive dated from a time when a 2-week package holiday booked through a travel agent using a brochure was the most common type of holiday for EU residents. Consumer behaviour has now, however, been changed by new business models transformed by the internet and low-cost airlines, and consumers are increasingly putting together their own packages.

“We need tough protection that gives all consumers booking a package holiday the peace of mind they deserve, and we need a level playing field so businesses compete on equal terms,” Consumer Commissioner Meglena Kuneva said.

“II am particularly concerned about the issue of insolvency. Anyone who saw the TV pictures of thousands of holidaymakers stranded at airports after bankruptcies from Sky Europe to XL, Futura and Zoom, knows that now is the right time to ask tough questions about extending basic insolvency protection to consumers across the board.”

The European Parliament’s EPP Group is stressing the need to guarantee passenger compensation in the event of airline bankruptcy, noting that 77 airlines went bust in the EU since 2000.

“There are existing rules on a European level that protect consumers, but nowadays a lot of travellers book their flights online and are therefore not automatically supplied with an insurance policy. In order to avoid this problem in the case of an airline bankruptcy, the European Parliament asks the stakeholders for a gentleman's agreement,” MEP Mathieu Grosch said.

The Commission intends to bring forward concrete proposals to review the directive by Autumn 2010.

The consultation period runs until February 7, 2010, and consultations can be made online through http://ec.europa.eu/consumers/rights/travel/consultation_en.htm.

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