A prominent industry lawyer claims that the EU is planning a "root and branch" revision of package travel regulations while the UK is only "tinkering around the edges".

The EU's "ambition" in its ongoing assessment of the Package Travel Directive (PTD) has been compared by Fox Williams partner Rhys Griffths to the Department for Business and Trade's study of the UK Package Travel Regulations (PTRs).

"PTD reform will be much more root and branch, looking at ways to improve the directive and reviewing how the PTD fits with EU Regulation 261 [on air passenger rights]," he said at the most recent Abta Travel Law Seminar in London.

"The aspiration is admirable. In the UK, we are making minor adjustments.

Griffiths mentioned that the EU is looking into issues that caused issues during the pandemic, such as refunds for cancelled flights, the distribution of vouchers, and the status of Foreign Office guidance.

Griffiths cautioned that this "could be problematic" as the EC is also exploring limits on consumer pre-payments.

"The EU is looking at potential solutions should it happen again," he said. "When flights were grounded during the pandemic and package organisers had to refund all customers, it created enormous liquidity problems."If the airline does not reimburse the organiser, one option would be for the customer to request a refund from the airline. As an alternative, requiring airlines to reimburse event planners within seven  Day.

In the early stages of the epidemic, Griffiths continued, "We saw organisers give vouchers that weren't necessarily financially safeguarded. If it occurs again, the EU is looking to control vouchers.

The Foreign Office's travel advice is another topic under consideration, with Griffiths stating that "The EC is looking at whether to link refund rights to advice."

However, the EC is considering placing a limitation on consumer prepayments akin to German regulations that limit deposits to a maximum of 20% and demand that balances only be paid 30 days prior to departure.

Griffiths issued a warning: "That could be problematic for organisers required to make payments to suppliers but limited as to when cash can be taken from customers."

A prepayment cap would be important to HotelPlan, according to Toni Boswell, head of legal affairs. Many providers demand upfront payment in full. A significant liquidity difficulty would result from only being able to accept 20% as a deposit and full payment 30 days away.

Later this year, the EC intends to publish suggested modifications.