Partner Sydney
"OTAs and other online travel platforms should be prepared for further Australian regulatory scrutiny and investigation, particularly in relation to fees, charges and complaint handling."
Australian consumer protection bodies and regulators, including the Competition and Consumer Commission (the “ACCC”) have seen a surge in claims by consumers involving residential bookings through online travel agencies (OTAs). These range from dissatisfaction with complaint handling procedures to compensation for properties damaged by guests who have booked through an OTA. Regulators are increasingly focussing on how OTAs respond to complaints and claims for damage caused by guests and the ‘responsibility loop’ where an OTA refers the complaint to the service provider which in turn refers the complaint to the OTA and vice versa. This focusses on whether the OTA’s conduct breaches Australia’s consumer protection laws and whether this conduct constitutes misleading and deceptive conduct. The ACCC has shown no hesitation in pursuing online platforms in the Australian courts, including those with no physical Australian presence and obtaining multi-million-dollar judgments against these platforms.
The ACCC is also investigating the fees and charges which OTAs charge for bookings, particularly where these appear to be disproportionate to the cost of the booking and OTAs.
Take-away: OTAs and other online travel platforms should be prepared for further Australian regulatory scrutiny and investigation, particularly in relation to fees, charges and complaint handling.
European Union
The EU has released a revision of the Package Travel Directive 302/2015, which will enter into force on 5 May 2026. Member states have until September 2028 to implement the changes with full implementation by March 2029.
The key changes are:
- improved and clearer defined terms;
- Linked Travel Arrangements are abolished;
- clearer and more standardised use of vouchers for refunds;
- enhanced and more detailed complaint handling procedures;
- express deadlines for refunds and responding to complaints;
- repatriation must be offered to passengers on return trips in the event of insolvency; and
- more detailed requirements for insolvency protection.
"The changes seek to address the issues which arose in relation to refunds for travel cancelled or disrupted by COVID-19 and the collapse of Thomas Cook and the increasing use of OTAs by consumers in the EU."
Take-aways: The changes seek to address the issues which arose in relation to refunds for travel cancelled or disrupted by COVID-19 and the collapse of Thomas Cook and the increasing use of OTAs by consumers in the EU. Notwithstanding the greater clarity in these changes, several issues remain unclear and will require either further clarification by the Commission or EU courts. This includes the relationship with other EU directives on passenger compensation and assistance and the extent to which non-EU suppliers will be subject to and bound by the Directive’s deadlines for them to refund travel organisers when the services of the non-EU suppliers are cancelled or are not fully or properly performed. Another key issue is the speed with which Member States will implement the changes and the extent to which these changes are implemented uniformly and consistently across the EU.
Singapore
In our Q1 update, we reported on the SAF levy which was to apply to tickets for flights departing Singapore from 1 April 2026. Given the current surge in jet fuel costs, implementation has been delayed to 1 October 2026.
Thailand
The Electronic Transactions Committee has proposed to require social media platforms to verify the identity of users and advertisers. Based on the current draft of the proposal, the identity verification requirements for advertisers appear more stringent and demanding than those for users. These requirements would specifically include:
- the extent to which the advertiser complied with the platforms T&Cs;
- the level and nature of previous complaints against the advertiser;
- advertising which targets specific groups, such as the young and the elderly; and
- advertising which deals with financial products, potential cybercrimes and sensitive personal data.
Next steps: Public consultation on this proposal closed on 2 February and the Committee is currently considering the submissions before deciding whether to proceed with a notification to give effect to this proposal.
Türkiye
In January, the Turkish Association of Travel Agencies commenced proceedings in the Turkish courts which seek to ban the following OTAs and travel platforms from Türkiye:
- Agoda;
- Airbnb;
- Expedia;
- GetYourGuide;
- Hotels.com;
- Isango;
- Musement;
- ToursByLocals;
- Trip.com; and
- Viator.
"These proceedings appear based on the 2017/2018 proceedings which resulted in Booking.com being banned for Turkish users."
The proceedings have been filed on the basis that these companies are not locally registered and regulated, do not comply with local tax and other regulatory requirements and their conduct constitutes unfair competition for Turkish travel agencies.
Take-away: These proceedings appear based on the 2017/2018 proceedings which resulted in Booking.com being banned for Turkish users.
United Kingdom
From 1 April 2026, revised CAA rules relating to displaying ATOL protection in advertising come into force. These apply to all media, including social media and influencer content but not to paid search advertising. The changes remove CAA requirements as to how ATOL protection must be disclosed and displayed in advertising and the onus is now on the advertiser to display ATOL protection as they consider appropriate and proportionate to the size, layout and style of the content. Advertisers are only required to display or disclose ATOL protection in advertising and content which refers or relates to an ATOL product, which will largely limit the requirement to display ATOL protection to packages which include a flight component.
