A report out this week is urging the Government to make the travel industry more aware of the impact of the new Package Travel Directive coming into force next year.
The annual report of the Air Travel Insolvency Advisory Committee (ATIPAC) says the committee fears there is ignorance within the industry of the impending changes.
With Brexit negotiations continuing, ATIPAC is worried that many in the trade wrongly believe nothing will change.
It is also concerned that the changes will lead to confusion among consumers about which part of their holiday is actually protected.
ATIPAC chair John Cox said: "The Committee welcomes the introduction of the new Package Travel Directive and particularly the enhanced information on protection for holidaymakers.
"However, the Committee is very concerned about how the new concept of Linked Travel Arrangements (LTAs) will work, particularly as protection only applies to part of a holiday.
"While extending consumer protection rights to LTAs may appear to be a step forward, the problem of defining an LTA and explaining the definition is likely to lead to consumer confusion about which part of their holiday has been protected.
"Furthermore, unless travel operators get very clear guidance about which holiday components can be sold as LTAs, the committee fears that some traditional package holidays could be mis-sold as LTAs, leading to a travel protection scheme which is inconsistent and results in serious consumer detriment.
"Consequently, the committee strongly recommends that the Government sets an unambiguous definition of an LTA that differentiates it from holiday packages, and provides both consumers and the travel industry with clear guidance."
