Knowledge Platform

Primary Liability

Pursuant to the PTD, primary liability for loss/damage resulting from the improper performance of the contract, including for the breach of contract/negligence of third party suppliers will rest with the package organiser; thus providing the consumer with a generally more accessible and centralised target for complaint if something should go wrong – rather than having to pursue the supplier who may have a much smaller, less accessible infrastructure for dealing with such complaints or who may not have adequate financial security in place to address the consumer’s complaint in full.

In addition to liability for loss/damage, the organiser is also required to provide the consumer with certain information prior to contract and additional information prior to departure. The organiser will also be primarily liable for any significant alterations to the package prior to departure and in resort – rather than the actual travel service provider.

The organiser is not prevented from seeking an indemnity from its service providers in the event that they are held primarily liable to the consumer; and such a scenario is explicitly envisaged by the PTD. In order to safeguard its position, the organiser should ensure that its’ agreements with its suppliers provides sufficient protection from any claims arising under the PTD – including requiring the supplier to have adequate insurance/financial protection in place to meet any claim. The organiser should wherever possible ensure that they obtain copies of their suppliers’ insurance certificates and contact details for their insurers prior to the commencement of any contract for services.