UK CMA: Foreign Package Holidays Order 2001 Revocation Confirmed

• The Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001 was revoked on November 4, 2026.
• This order previously prevented tour operators and travel agents from tying travel insurance to foreign package holiday sales.
• The revocation means the specific legal prohibition against this practice is no longer in effect.
• The Competition and Markets Authority (CMA) published its final decision leading to the order's removal.
• The original order was established under the monopoly provisions of the Fair Trading Act 1973.

With the specific prohibition against tying travel insurance to package holiday sales now removed, these businesses are no longer legally constrained by this particular rule.

The Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001 has officially been revoked, marking a significant change for the UK travel industry. This legal instrument, which had regulated certain sales practices for over two decades, ceased to be in force on November 4, 2026. The decision to revoke the order followed a comprehensive review conducted by the Competition and Markets Authority (CMA), which subsequently published its final findings.

As a direct consequence of this Foreign Package Holidays Order 2001 revocation, the order has been formally removed from the register of remedies that are currently in force. This administrative action confirms that the specific regulations it imposed are no longer legally binding. The CMA's review and subsequent decision underscore a re-evaluation of the necessity and impact of such prescriptive rules within the competitive landscape of foreign package holiday sales.

The original Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001 was enacted with a clear purpose: to prevent tour operators and travel agents from mandating the purchase of their specific travel insurance products as a prerequisite for selling foreign package holidays. This measure was designed to protect consumers from being charged additional fees by travel providers if they chose not to acquire the agent's or operator's holiday insurance, thereby ensuring greater consumer choice and preventing potential anti-competitive practices.

The legal authority for establishing this order stemmed from the monopoly provisions embedded within the Fair Trading Act 1973. This foundational legislation empowered regulators to address market behaviors that could restrict competition or create unfair advantages. Therefore, the order served as a specific application of broader competition law principles, aiming to ensure a level playing field and fair treatment for consumers in the travel sector, particularly concerning CMA travel insurance tying concerns.

The recent travel agent insurance revocation fundamentally alters the regulatory environment for UK tour operators and travel agents. With the specific prohibition against tying travel insurance to package holiday sales now removed, these businesses are no longer legally constrained by this particular rule. This means that the explicit legal barrier that prevented operators from bundling or requiring their own insurance products with holiday packages has been lifted.

This shift in UK tour operator insurance rules necessitates a review of sales policies and compliance frameworks within the industry. While the revocation removes a specific restriction, businesses will still need to navigate broader consumer protection laws and competition regulations. The absence of the 2001 Order means that the direct legal prohibition on this form of tying no longer applies, allowing for potentially different approaches to how travel insurance is offered and sold alongside foreign package holidays.

The Competition and Markets Authority (CMA) was instrumental in the process leading to the Foreign Package Holidays Order 2001 revocation, having conducted the review and published its conclusive decision. This decision is detailed in an official document, referred to as the Revocation Order PDF, which is a concise four-page file, approximately 183 KB in size, outlining the specifics of the order's repeal.

For those interested in the full historical context and the detailed findings that informed the CMA's decision, a comprehensive collection of documents from the inquiry is readily available. These materials are archived and accessible through The National Archives, providing a complete record of the process that led to the removal of this long-standing regulation affecting the travel industry.

Lawyers advising UK tour operators and travel agents should note that the Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001, which prevented tying travel insurance to package holiday sales, has been revoked. This means the specific legal prohibition against this practice no longer applies, and compliance officers in these sectors should review their sales policies accordingly.

Source: Original reporting via GOV.UK guidance