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 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.
Marketers should seek legal advice before offering any insurance-related discounts.
Source: Committee of Advertising Practice (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 AdviceOnline entries provide guidance on interpreting the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing.
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