F26[18.— (1) The organiser shall not unilaterally change any term of a package travel contract before the start of the package, other than the price in accordance with section 17, unless—

(a) the organiser has expressly reserved that right in the contract,

(b) the change is insignificant, and

(c) the organiser informs the traveller of the change in a clear, comprehensible and prominent manner on a durable medium.

(2) If, before the start of the package, the organiser—

(a) is constrained to alter significantly any of the main characteristics of the travel services as referred to in section 10(1)(a),

(b) cannot fulfil the special requirements as referred to in section 13(1)(a), or

(c) proposes to increase the price of the package by more than 8 per cent in accordance with section 17(4),

the traveller may within a reasonable period specified by the organiser—

(i) accept the proposed change, or

(ii) terminate the contract without paying a termination fee.

(3) If the traveller terminates the package travel contract under subsection (2)(ii), the traveller may accept a substitute package where this is offered by the organiser, which shall, where possible, be of equivalent quality to, or a higher quality than, the original package.

(4) The organiser shall, without undue delay, inform the traveller in a clear, comprehensible and prominent manner on a durable medium of—

(a) any proposed change referred to in subsection (2)(a), (b) or (c) and, where subsection (5) applies, the impact of that proposed change on the price of the package,

(b) a reasonable period within which the traveller shall inform the organiser of his or her decision under subsection (2)(i) or (ii),

(c) the consequences of the traveller’s failure to respond within the period referred to in paragraph (b), and

(d) in the circumstances referred to in subsection (3), the substitute package offered by the organiser and the price of that substitute package.

(5) Where the changes to the package travel contract referred to in subsection (2)(a), (b) or (c) or the substitute package referred to in subsection (3) result in a package of lower quality or cost, the traveller shall be entitled to a corresponding price reduction.

(6) Where the traveller terminates the package travel contract under subsection (2)(ii) and the traveller does not accept a substitute package under subsection (3), the organiser shall refund all payments made by or on behalf of the traveller without undue delay and in any event not later than 14 days after the contract is terminated.

(7) In the circumstances referred to in subsection (6), subsections (2) to (8) of section 20 shall apply with any necessary modifications.]