The Department for Business and Trade has put forward proposals to allow local hospitality businesses to better work together to offer customers package deals, as part of efforts to promote staycations and domestic tourism.
UKHospitality has been a key voice in securing these changes, alongside the Tourism Alliance, Professional Association of Self Caterers, and the Bed and Breakfast Association. The coalition has been calling for the outdated restrictions to be scrapped.
The new proposals cut unnecessary red tape for members.
What are the proposals?
Local businesses are currently restricted from offering discounts or deals at nearby venues, due to unnecessary restrictions on ‘package travel’, which are primarily in place to regulate travel companies offering holidays abroad.
The current rules require any business offering a package of deals to jump through several costly regulatory hoops, including insurance.
This is impractical and unnecessary for local hospitality businesses in the UK, which may wish to offer guests a discount or deal at other local venues or attractions.
For example, a local hotel or B&B unable to offer dinner, could team up with a nearby restaurant or pub to offer guests a discount on food, under the new proposals.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “This is exactly the type of needless regulation that the Government should be axing.
“We have been at the forefront of suggesting which unnecessary red tape can be scrapped and I’m pleased that our proposals to reform package travel restrictions are being taken forward.
“Collaboration between local hospitality businesses can be beneficial for the local area and provide further incentive for tourists looking for a staycation.
“A clear focus on cutting red tape and replacing it with smarter regulation is positive, and this needs to be done alongside more meaningful measures to reduce the ever-growing cost burden for hospitality.
“We will be putting our full support behind these proposals and hope to see them become a reality as soon as possible.”
Consultation
Responding to the Department for Business and Trade’s consultation on these changes, we reiterated our particular support of the proposals that would exempt domestic-only packages that do not include a travel element from the scope of the Package Travel Regulations (PTRs).
We said the change would remove disproportionate burdens on businesses offering simple, value-added domestic products (e.g. hotel stays with event tickets), which currently face significant barriers in providing such offers due to unnecessary regulatory exposure.
This reform could support business growth, increase consumer choice, improve regional tourism offers, and extend the peak travel season, all while preserving strong consumer protection through existing UK legislation
