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A European directive from 1990 which regulates package holidays should be scrapped or re-written to protect all travellers, ABTA is urging.

The travel industry trade body says the EU Package Directive must cover consumers regardless of whether they book a holiday package or not.

ABTA claims that there is a “stark imbalance” as to who has to provide refunds for pre-payments in the event of a travel company failure.

All travel suppliers including providers of transport services should be subject to this regulation, the association says.