New EU directive forces OTAs to overhaul operations and boost traceability
The new European package travel directive is already on OTAs' radar, and for good reason. According to Hosteltur, online travel agencies will have to update their technology to handle payments, cancellations, vouchers and claims with much greater accuracy than before.
Christian Lucas from Central de Vacaciones makes it clear: the direct impact will be on liquidity, especially for SMEs. They will need to provide better information on package holidays and manage timing mismatches between advances and refunds. The result? Compliance costs go up.
- OTAs must increase traceability for every transaction.
- Payment and cancellation systems will need to be more agile.
- Smaller agencies will feel it most in their bottom line.
My take: this is an opportunity for those who get their tech act together. Agencies that automate processes properly will come out stronger, while those still patching things up will struggle. Traceability isn't a regulatory whim, it's a competitive advantage if you turn it into customer trust.
Quick questions
What is the new EU package travel directive?
How does the directive affect small OTAs?
What operational changes will OTAs have to make?
Why is traceability key now?
Is this a threat or an opportunity for OTAs?
Was this article useful?
The daily brief
Notitur in your inbox
One sharp travel-industry brief a day. Free.
Editorial content by Notitur. It may contain errors. Verify anything important with the original source.
This article may mention third-party products, companies or services for informational purposes. Notitur does not endorse them and is not responsible for them or for what they offer. Editorial content curated by the Notitur team.