Study on consumer detriment in the area of dynamic packages

Practice area: Consumer behaviour and protection | Functioning of retail markets | Public Policy
Client: EC DG Health and Consumers
Published: November, 2009
Keywords: quantitative analysis stakeholder surveys and consultations

In a report published by EC DG Health and Consumers, London Economics has estimated consumer detriment in EU-27 in the area of ‘dynamic travel packages’. A ‘dynamic package’ is a holiday package where different tourist services (flights, car rental, accommodation, excursions etc.) are put together at the same time to fit the specifications of a consumer. Based on a consumer survey undertaken in 17 EU Member States, the study estimates that 23% of the population in EU-27 have used dynamic packages within the last 2 years and that yearly personal consumer detriment in EU-27 is €1,065 million gross and €1,005 million net (after compensation).

Our study also looked at structural consumer detriment. This detriment arises, in particular, due to some consumers not being aware of the different levels of protection that different types of travel arrangements afford. We concluded that the lack of information by a significant fraction of travellers and the large and growing importance of the dynamic travel package sector would be likely to combine to make structural detriment in this market significant.