Why the Package Travel Rules are Changing - And What UK Travel Businesses should know for 2026

The UK travel industry is heading into another period of regulatory change. While the UK continues to operate under the Package Travel and Linked Travel Arrangements Regulations 2018, Europe is now close to finalising a major update to its own Package Travel Directive. These changes will not automatically apply in the UK, but they will affect any UK business selling holidays to EU consumers or working with EU partners.

At the same time, the UK Government has been consulting on its own reforms. The focus is on reducing complexity, improving insolvency protection, and supporting domestic tourism. This creates an unusual moment where the EU is moving towards stronger consumer rights, while the UK is exploring a more flexible, growth-focused approach.

Many travel agencies and tour operators will find the next two years difficult to navigate, especially if they operate in more than one market. The most common questions we are hearing are:

• Will Linked Travel Arrangements be abolished
• Will the UK introduce new insolvency rules
• Will EU prepayment caps affect UK agents
• Do UK businesses selling to EU residents need EU-recognised protection
• How will all this tie into ATOL and trust accounts

To help bring clarity, Antravia has published a full 2025–26 guide covering the entire landscape. It explains the current EU rules, the UK version, the differences emerging between the two, and what the latest trilogue negotiations mean for 2026 and beyond. It also covers trust accounts, bonding, insolvency schemes, B2B refund rights, and the significant financial impact of abolishing LTAs.

This is essential reading for any UK travel business that sells flight-inclusive packages, operates dynamic packaging, or facilitates add-on bookings online.

Read the full guide here:
The Package Travel Directive and Linked Travel Arrangements: A 2025-26 Guide for European & UK Travel Businesses

At Antravia UK we support travel businesses with ATOL integration, trust account setup, VAT and TOMS issues, liquidity management, and compliance strategy. If your business sells in both the UK and the EU, now is the time to review your insolvency arrangements and booking flows ahead of the regulatory changes coming in 2026–2028.

If you would like a short compliance review or want to discuss the financial impact of these reforms, contact us through Antravia.co.uk.

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.