In everyday trade use, a tour operator contracts or buys the parts of a holiday and sells it direct or through agents, and a travel agent sells other companies’ products, usually for commission. The law tests what a business actually does, and many businesses are both: a retailer for some bookings and an organiser for others.

Organiser and retailer

Under the Package Travel Regulations 2018, the organiser is the business that combines and sells packages. The retailer is any other business selling a package that an organiser has put together. The organiser is responsible for the performance of the whole package and for insolvency protection. Organiser and retailer must between them make sure the traveller gets the required information, and the retailer must pass on complaints. A UK retailer selling packages put together by an organiser based outside the UK takes on the organiser’s duties for performing the package and for insolvency protection, unless it can show the organiser already meets them.

An example

A high street agent selling a tour operator’s package is the retailer. The same agent tailor-making a trip from a scheduled flight and bed bank hotels is the organiser.

Watch out for

• Calling yourself an agent does not settle it. Government guidance says any business that ultimately combines a package is its organiser.

• VAT uses its own tests. HMRC says “travel agent” is used loosely, and VAT law treats a travel agent acting as principal as a tour operator.

• ATOL has its own categories, such as ATOL holder, agent for an ATOL holder and airline ticket agent.