Travel

What are the licensing and consumer protection guidelines for travel operators and travel agents?

This guide outlines the legal distinctions between travel agents and tour operators in Ireland, explains licensing and bonding requirements, and details consumer protection obligations under Irish law. It includes advice on package holidays, booking terms, cancellations, complaints procedures, and more, ensuring businesses comply with the Competition and Consumer Protection Commission (CCPC) standards.

What is the difference between a tour operator and a travel agent?

The law and the licensing system in this area make a distinction between tour operators and travel agents. In general terms:

• A tour operator acts as the principal provider in relation to overseas travel which they arrange for the purpose of selling to the general public. They can organise this travel solely or in association with another accommodation, facility or service. You can find more information under Section 2. of the Transport (Tour Operators and Travel Agents) Act, 1982.
• A travel agent offers travel packages and can sell to the public, offer to sell to the public, purchase on behalf of the public or offer to purchase on behalf of the public.

If your business performs both roles, you must have a separate license for both.

Do I need a licence for domestic package holidays?

If you sell package holidays within Ireland (e.g. hotel plus golf or rail and accommodation), you do not need a tour operator or travel agent licence. However, you must have insolvency insurance.

What qualifies as a package holiday under Irish law?

A package holiday is defined as a pre-arranged holiday or trip that is sold at an inclusive price, in one transaction,  which must last more than 24 hours or include an overnight stay. It must also include at least two of the following:

• Transport
• Accommodation
• Car or other vehicle hire
• A tourist service or activity (e.g. golf or hill-walking)

It does not matter if you ask customers to pay separately for different components of the package (for example the flight or hotel). The holiday still remains a “package holiday” in terms of consumer law.

Who is liable for fulfilling the holiday contract?

Under the Package Holidays and Travel Trade Act, the organiser (tour operator) is responsible for fulfilling all contract obligations, whether such obligations are to be performed by the organiser, the retailer or any other suppliers of services.

What must I include in the holiday contract?

When a customer books a holiday with you, they enter a contract. So the information you provide in the holiday brochure must not be false or misleading. If customers enter into the contract on the basis of what was in the brochure, they may claim damages if the information turns out to be incorrect.

You must provide your customers with a copy of the contract, containing information such as:

• Destination and duration of the holiday
• Transport type, departure times and locations
• The location and category of the accommodation and its compliance with the law of the EU member state in question
• Meal plans if applicable
• Cancellation arrangements (for example where a minimum take up is required for the package holiday to take place)
• Excursion itineraries
• Taxes and compulsory charges
• Complaints procedure

What information must I give before the contract is signed?

You must inform customers about:

• Whether there are passport/visa requirements
• Whether they need any special vaccinations
• Whether insurance is compulsory
• The option for the traveller to terminate the contract any time before the start of the package for an appropriate fee, or standardised termination fee required by organiser.

There is additional pre-contractual information which is required to be provided to the customer where applicable, you can find this under Section 6. of the European Union (Package Travel And Linked Travel Arrangements) Regulations 2019.

Note: You cannot require customers to buy a specific insurance policy from you.

The contract should also spell out the arrangements in the event of unforeseen events for repatriation (returning home) and the bonding arrangements (see below).

The CCPC investigates cases of misleading advertising in package holiday brochures or inadequate information given to the consumer before departure. It has the power to investigate compliance with the relevant legislation.

What are bonding requirements for travel businesses?

By law, all Irish travel agents and tour operators arranging overseas travel must be state bonded. This means that if you go out of business, your customers’ money and bookings are protected.

Operators in Ireland must be licensed by the Commission for Aviation Regulation and enter into a bond. If they go out of business, this Commission administers the bond and assesses customers’ claims for a refund, or arranges to get them home if stranded abroad.

Remember, travel agents and tour operators that do not arrange overseas travel must be insured against insolvency.

What happens if you cancel or change a holiday?

If you, as the operator, cancel the holiday or significantly alter an essential term of the contract, including the price or type of accommodation, you must give customers the following options:

• A replacement of equal or better quality, if you can provide this
• A lower grade holiday with a refund of the price difference, if you can provide this 
• A full refund
• Compensation in certain circumstances

Compensation may not be due if you need to cancel the package due to factors outside your control, such as an “act of God”, or where you have failed to get the number of people required for the package to take place. However, customers are still due a refund or replacement holiday as set out above.

No price changes are allowed within 20 days of the departure date.

Can customers transfer their holiday to someone else?

Yes, but with reasonable notice. The traveller must give the organiser a minimum notice of 7 days before the start of the package if they wish to transfer their holiday. The customer and person they are transferring it to are jointly liable for remaining payments and any additional costs.

How should I handle complaints?

Your contract must outline the complaints procedure. Initial complaints should be handled by your local rep or organiser and you should also complaint forms available.

You must compensate customers if services differ from what was promised, but you should also be given the opportunity to remedy the situation (at no extra cost to the customer).

If a holiday-maker is still not satisfied on their return home, they should lodge a complaint in writing to you within the time limit set out in the contract, which cannot be less than 28 days. You should respond to this within a reasonable time.

If customers are still not satisfied and their claim does not exceed €2,000, they are entitled to take you to the Small Claims Court. Most package holiday contracts state that claims above this limit may be pursued through arbitration.