“The worst experience as a traveller is being stranded in a far-off place because your travel organiser went bankrupt.” MEP and rapporteur Alex Agius Saliba opened the debate with those words ahead of the first reading this week of the European Commission’s revised Package Travel Directive, aimed at improving conditions for travellers and tourists across Europe. As expected, the proposal passed easily: 535 votes were in favour, 36 against and there were 47 abstentions.
What’s at stake
Most of us have had that one — or if unlucky, more than one — holiday from hell, where everything went wrong and made us vow never to return. So far, the EU seems to be making progress. At the heart of the reforms is a commitment to ensure all consumers are well protected and quickly reimbursed in uncertain — or even extraordinary — times.
Ahead of the vote on Thursday, 11 September, Alex Agius Saliba said the collapse of Thomas Cook travel company and tour operator and the travel disruptions during the pandemic had highlighted the need for improvements. For him and his political group, the rapporteur said, the interests of EU citizens and consumers and the strengthening of their protection were the “top priority” and “starting point”. In his case it was personal, too.
“Coming from Malta, one of Europe’s finest holiday destinations, tourism is very close to home. Many tourist agencies that organise these packages are small, privately owned businesses, and we want to support them. Therefore, we need to find a balanced approach. It is my conviction that we found such a balance.”
Commissioner weighs in
Michael McGrath, the EU’s Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, backed the proposal, welcoming the update for improving consumer protection while also giving more legal certainty to travel operators. He noted that tourism accounts for up to 10 percent of the EU’s GDP and involves around 3.5 million mostly small businesses. He pointed out that while the last major reform of the directive in 2015 had been significant, the pandemic had exposed gaps, especially on refunds, insolvency and clarity over responsibilities. The commissioner confirmed the proposal broadly aligned with the Commission’s objectives, although some matters are still likely to be challenged and hammered out in trilogue discussions ahead.
What has been redefined?
Faster refunds and voucher rules
Travellers whose package holidays are cancelled due to extraordinary circumstances such as natural disasters, political unrest or public health emergencies must now receive a full refund within 14 days. Companies can still offer vouchers but these must be transferable, valid for 12 months and refundable in cash if unused.
Insolvency protection for consumers
Organisers will be required to carry financial protection, such as insurance or a guarantee scheme, to ensure customers are reimbursed in the event of insolvency. This aims to prevent a repeat of the chaos during the covid-19 pandemic, when many consumers lost compensation after travel firms collapsed.
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Caps on advance payments
New restrictions cap advance payments at 25 percent of the total package cost unless a higher amount is reasonably justified. This reduces consumers’ financial exposure if holidays are cancelled or plans fall through.
Stronger complaint procedures
All travel providers must have formal complaint-handling systems. Complaints must be acknowledged within seven working days and fully answered within 30 days. National authorities will gain powers to fine companies based on a percentage of their annual turnover.
Clearer definitions of package travel
The directive also clarifies what counts as a “package” under EU law, tightening definitions of travel combinations and timing of bookings. This prevents companies from avoiding responsibilities by splitting services or adding extras separately.
A few unresolved issues and next steps
The changes mark one of the most significant upgrades to EU consumer travel rights in a decade, signalling a shift toward a more resilient, transparent and accountable tourism industry.
While the reforms have been broadly welcomed by consumer groups and small businesses for legal certainty, some concerns remain. One sticking point is how to define and regulate dynamic bookings, where travellers combine flights, hotels and services online.
With the Parliament’s position adopted, the file will enter trilogue talks with the Council and Commission later this month.
