The Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001, which revoked an earlier Order of 1998, prevents travel agents and tour operators from discriminating by tying travel insurance to the sale of foreign package holidays. They must neither discriminate in respect of the price charged for a foreign package holiday, or by requiring payment of an additional charge against a person who does not acquire travel insurance.

The Committee of Advertising Practice (CAP) understands that claims such as “10% off this holiday when you purchase our travel insurance” and “£50 fee per person for those who don’t purchase our travel insurance”, for example, are therefore unlikely to be legal. Marketers are strongly advised to seek legal advice before offering any insurance-related discounts to holidaymakers.

The position on whether it is legal to offer non-monetary discounts, such as car hire, is unclear, but it is likely to be acceptable to offer incentives unconnected to the holiday, such as retail vouchers, for example.

See Travel Marketing: GeneralInsurance and Financial products and services

Source: CAP

Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the ASA.

CAP’s Advice Online entries provide guidance on interpreting the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing.

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