The Foreign Package Holidays (Tour Operators and Travel Agents) Order 1998

Explanatory Note

(This note is not part of the Order)

Article 2 of this Order prohibits travel agents (and those tour operators in a group of companies which includes a travel agent when the tour operator sells directly to the public) from discriminating in the price charged for a foreign package holiday, or by imposing an additional charge, against a person who does not buy travel insurance in respect of that holiday from the agent or tour operator.

Article 3 prohibits tour operators from entering into or carrying out an agreement (whenever made) which imposes any restriction in respect of the supply by the travel agent of foreign package holidays of another tour operator or which requires the travel agent to offer inducements in respect of the tour operator’s foreign package holidays at least equal in value to or marginally less in value than those offered by the travel agent in respect of the foreign package holidays of another tour operator (“most favoured customer” agreements).

Article 4 prohibits a tour operator withholding supplies or threatening to withhold supplies of foreign package holidays from, or discriminating in respect of the supply of foreign package holidays to, a travel agent who does not offer inducements at least equal in value to or marginally less in value than those the agent offers in respect of the foreign package holidays of another tour operator.

Article 5 excludes from the scope of the Order the making or carrying out of an agreement in so far as it is an agreement to which the Restrictive Trade Practices Act 1976 applies or would apply if made.

Copies of the report of the Monopolies and Mergers Commission on which the Order is based (Cm. 3813) may be obtained from the Stationery Office.

A Regulatory Appraisal has been drawn up by the Department of Trade and Industry and is available from the Consumer Affairs and Competition Policy Directorate, Department of Trade and Industry, Room 6.P.11, 1 Victoria Street, London SW1H 0ET, Telephone [phone]. Copies have been placed in the libraries of both Houses of Parliament.