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Passenger Package published on 13 May, including a targeted revision of the Rail PRR
In May this year, the European Commission published the so-called “Passenger Package”, consisting of three legislative proposals:
1. Proposal to amend the Rail PRR 2021 with regard to single tickets;
2. Draft Rail Ticketing Regulation (“RTR”, previously referred to as “SDBTR”); and
3. Draft Regulation on Multimodal Digital Mobility Services (“MDMS”, previously referred to as “Multimodal Booking”).
The package, in particular the proposed revision of the Rail PRR and the RTR, represents the most significant intervention in rail distribution and passenger rights in recent years and could have substantial implications for railway undertakings (RUs). While CIT’s primary focus is on the proposed targeted revision of the Rail PRR, it will also closely monitor developments concerning the RTR where these are linked to passenger rights under the Rail PRR.
Proposed targeted revision of the Rail PRR regarding “single tickets”
The proposal introduces amendments to three provisions of the current Rail PRR 2021 with the aim of strengthening passenger protection where a journey is purchased under a “single ticket”, i.e. where either a through-ticket or several transport contracts are purchased in a single commercial transaction. Although presented as a targeted revision, the proposal could have far-reaching consequences for railway undertakings and their liability.
A key element of the proposal is the introduction of a new definition of “single ticket” in Article 3. The concept would cover not only traditional through-tickets, where one transport contract covers successive rail services, but also situations in which several transport contracts are purchased by a passenger within a so called single commercial transaction. Passenger rights would then apply to the entire journey, including rights relating to journey continuation, assistance (e.g. hotel accommodation) and delay compensation payments, subject to certain limitations. Concerning delay compensation, a cap would be introduced for cumulative compensation liability for journeys under a single ticket exceeding 12 hours, although this limitation would not apply to journeys involving night train services.
To implement the new “single ticket” concept, substantial amendments are proposed to current Article 12 of the Rail PRR. The revised provision under Article 12 would apply to journeys involving one or more connections rather than, as currently, being limited to through-tickets.
The obligations on “single tickets” within the proposed Rail PRR are closely linked to the draft RTR, under which RUs would be required to allow ticket vendors to sell combinations of tickets as a single ticket. Consequently, the revised Rail PRR would effectively prevent RUs from avoiding the sale of single tickets by splitting journeys into separate commercial transactions.
Article 12 as proposed also introduces a specific liability mechanism for single tickets. Under this mechanism, the RU whose delayed, cancelled or early-departed service causes a missed connection could become liable under Articles 18 (reimbursement and re-routing), 19 (compensation) and 20 (assistance) for the entire travel chain covered by the single ticket.
This approach raises a number of practical questions, particularly where several RUs are involved, where delays accumulate during a journey, or where it is difficult to determine which service actually caused the missed connection. These and many other issues remain unresolved and require further clarification during the legislative process.
In addition, Article 12 would effectively make the CIT Agreement on Journey Continuation (AJC) mandatory as draft Article 12(2) provides that RUs operating services covered by a single ticket that are missed due to a disruption must allow passengers to continue the journey on their next available service.
Given the potentially significant legal, operational and commercial implications of the proposed revision for RUs, as well as CIT products, CIT will continue to closely monitor and analyse the legislative developments through its relevant bodies and experts, including especially the CIV Working Group and its Chair Oliver Hirschfeld.
Proposed Rail Ticketing Regulation
The RTR introduces a new EU framework governing commercial and distribution rules in rail ticketing. It is closely linked to the targeted revision of the Rail PRR (see above), but also the new TEL TSI and the MMTIS framework.
Particular attention should be paid to two key concepts introduced by this proposed Regulation. First, the sharing obligation under Article 4 would require railway service providers to make rail products and related content available to online ticketing service providers upon request. Second, the hosting obligation under Article 5 would require “indispensable railway online ticketing service providers” to host the products of other RUs.
The RTR also establishes a framework for commercial agreements based on “fair, reasonable and non-discriminatory (FRAND)” conditions under Article 6. This includes the possibility for online ticketing service providers to combine rail products and market them as a single ticket.
Other important elements include the designation of “RUs with significant market presence” under Article 7 and the requirements of Article 8, under which rail service providers would generally be obliged to make tickets available for sale at least five months before operation, provided that inclusion in the working timetable has been ensured.
As a next step, the Council of the European Union and the European Parliament will discuss the proposed Passenger Package and form their position.