ABTA has praised the European Union review as a "great opportunity" for the travel industry to offer feedback.
This data could result in legislation that will protect the majority of customers from financial loss.
Frances Tuke, spokesperson for ABTA, says that the current Package Travel Directive is outdated and unhelpful for both consumers and the industry.
Ms Tuke adds that the rise of the internet and low-cost airlines has resulted in significant legislative gaps occurring.
Currently holidaymakers who make up their own travel packages are not guarded with the same protection as those who book certain package holidays through an agency.
However, those holidaying in places such as
Fuerteventura could soon be covered by stronger legislation that will extend the basic cover offered by the European Union's Package Travel Directive.
The number of people going on package holidays fell from 20.6 million in 2002 to 18.7 million in 2007, according to the Office of National Statistics.
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Written by Lauren Steadman
