The Package Travel and Linked Travel Arrangements Regulations 2018 changed the way that holders of travel trust accounts are able to access their protected funds. Organisers of package holidays sold after 1st July 2018 will be able to release a proportion of monies from trust that would otherwise be required to be held on trust if they obtain a commensurate degree of trust account insurance protection instead.
This represents an enormous benefit to account holders’ cash flow as they are now able to release funds from trust in order to pay suppliers.
The Package Travel Regulations 2018 also impose obligations on organisers to:
We view these changes as positive ones for trust account holders as they represent both an improvement in the quality of financial protection that trust accounts are able to offer, but also the opportunity for package organisers to release funds from trust before customers have travelled.
We are working with our insurance partners to ensure that suitable insurances at favourable rates are available to account holders from July 2018.