Package travel: Parliament greenlights new rules to protect holidaymakers  

This article is brought to you in association with the European Parliament.

On Thursday MEPs gave the green light to revised rules on package travel, enhancing protection for holidaymakers by drawing lessons from the pandemic and high-profile bankruptcies.

The updated directive, already provisionally agreed with the EU member states, clarifies which trips and services can be considered a travel package, introduces rules on the use of vouchers and sets out the conditions under which clients may cancel travel plans without cost.

Definition of a travel package

New rules should make it easier to know which combinations of travel services constitute a package. This is first and foremost determined by when and how the combination of services is booked. For example, in an online purchase where linked booking processes enable the combinations of services offered by separate traders, they will be considered a package if the first trader transmits the traveller’s personal data to the other traders, and the contract for all the services is concluded within 24 hours.

If the travel organiser invites the client to book additional services, the client has to be informed if these would not form a package with previously booked services.

Vouchers

The updated directive introduces rules about the use of vouchers, which were widespread during the pandemic. Consumers will have the right to refuse a voucher and request a refund instead within 14 days. Vouchers may be valid for a maximum of 12 months and clients must be refunded for any fully or partly unused and expired vouchers. Companies may not limit the choice of travel services for voucher holders.

Trip cancellation fees

Under current rules, clients can cancel their travel plans without any cancellation fees or penalties if unavoidable and extraordinary circumstances arise at the travel destination. This will now be extended to unavoidable and extraordinary events, both occurring at the point of departure or having the potential to significantly affect the journey. Determining whether circumstances are severe enough to justify free cancellation would be done on a case-by-case basis. Official travel recommendations may serve as indications to this end.

Deadlines for addressing complaints and making refunds

When receiving a complaint about a service, tour organisers will have to acknowledge receipt within 7 days and offer a reasoned reply within 60 days. If the trip organiser goes bankrupt, clients will have to be refunded for cancelled services from the insolvency guarantee within 6 months (9 months for very complex bankruptcies). The standard 14-day deadline for refunds for trip cancellation will remain unchanged.

Parliament adopted the directive by 537 votes in favour and 2 against, with 24 abstentions.

Quote

After the vote, Parliament’s rapporteur for the file Alex Agius Saliba (S&D, MT) said: “These updated rules will protect consumers when something goes wrong with their package holiday. In the case of extraordinary circumstances that affect any part of their trip, travellers will be able to cancel with a full refund. The acceptance of vouchers by consumers will remain voluntary, and they can request their money back instead. Travel companies will have the obligation to respond to complaints within 60 days and robust insolvency protection will ensure that when a bankruptcy occurs the financial loss is not shifted on families.”

Next steps

Council must now also adopt the legislation formally. The text will then be published in the Official Journal and enter into force. EU countries will have 28 months from the date of entry into force to transpose the new rules into national legislation and a further 6 months to start applying the new provisions.