The latest proposed changes to the Package Travel Directive fail on two key points, according to ABTA.
It says changes by the European Council, announced yesterday, mean that linked online sales are not adequately protected.
It also believes that the Council has reduced consumer protection attached to Assisted Travel Arrangements.
"What the Council has proposed is that the organiser of the ATA has to protect against their own insolvency, but once they pass on that money to the supplier, say an airline or hotel, if they become insolvent there is no protection," said ABTA head of public affairs Stephen D’Alfonso.
ABTA chief executive Mark Tanzer said the association was continuing to review the detail.
"Some clarity has been achieved on the definition of packages and Assisted Travel Arrangements (ATA), and other arguments made by the industry have been addressed, such as the exemption of business travel sales," he said.
"However, it is clear that certain changes made by the Council are unsatisfactory and not in line with the original objectives set by the Commission when they embarked upon this reform process – namely, the extension of clear and transparent consumer protection for holidaymakers, and a fairer regulatory framework for travel businesses."
Discussions between the European Commission, the Council, and the European Parliament will re-start in mid-January, after the Christmas break.
"As the process enters the final stage of negotiations in the new year, there will be further opportunities for the industry to ensure that our voice is heard," said ABTA.
