Extended rights to cancel trip without a penalty, better protection of customers when using vouchers, clear complaint-handling arrangements on the side of travel companies. Last week, Council and Parliament has struck a deal on updating protection rules for package holidaymakers. Reactions from tour operators are mixed, with some fearing unfair competition from online platforms.
The draft law informally agreed by Parliament and Council negotiators clarifies the definition of a travel package, conditions for cancelling a trip, and travellers’ rights to information and refund in various situations. That includes situations when travel organiser goes bankrupt or extraordinary circumstances cause travel disruptions.
Trip cancellations, refund rights
Under the updated directive, if trip organiser goes bankrupt, clients must receive a refund for cancelled services from the insolvency guarantee funds within 6 months. If unavoidable and extraordinary circumstances arise at the travel destination or departure point before a trip, or affect the journey, travellers have the right to cancel their trip without a penalty, with a full refund.
Such cases should be assessed individually and official travel recommendations will be important elements to be taken into account when considering whether a termination of the contract due to unavoidable and extraordinary circumstances is justified or not.
If travellers, however, are aware of a risk at the time of the booking but decide to purchase a trip nevertheless, they can not request cancellation without a fee.
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Stricter rules on vouchers
The updated directive also includes detailed provisions about the use of vouchers, which became widespread during the Covid-19 lockdowns. Consumers are given the right to refuse vouchers and request a refund within 14 days if they prefer. The vouchers should be valid for a maximum of 12 months and clients must be refunded—without a proactive request—for any fully or partly unused vouchers when they expire.
We set new rules on vouchers to make sure they are voluntary, and refunded if not used. We shielded travellers better against the trip organiser insolvency. – MEP Alex Agius Saliba (S&D, MLT), rapporteur for the file
Parliament’s rapporteur for the file Alex Agius Saliba (S&D, MLT) stressed that the update reinforces the rights of travellers in the EU. “We set new rules on vouchers to make sure they are voluntary, and refunded if not used. We shielded travellers better against the trip organiser insolvency and gave them the right to cancel their travel with a full refund in extraordinary circumstances,” Mr Saliba said.
The deal must now be formally approved by the European Parliament and the Council (expected in early 2026) before entering into force. EU countries will then have 28 months to adapt their laws to the new rules and a further 6 months to start applying the new provisions.
Travel giants: Level playing field essential
Touristik Union International (TUI), one of the world’s biggest travel and tourism companies based in Germany, in general supports the prepared legislation. It stated that “the European Institutions chose to strengthen package traveller rights in a balanced way, and have taken into account the legitimate concerns by the European travel sector”.
“This now sets European package holidays up for the future and ensures that package travel remains the gold standard for travellers,” said TUI spokesperson to EU Perspectives. At the same time, however, he expressed the urgent need to maintain fair market conditions. “The EU should continue to be vigilant about the need for a level playing field between highly regulated and well-protected package holidays, and on the other hand arrangements offered by platform operators which do not protect holidaymakers at all,” TUI spokesperson added.
Similar caution was expressed by Viajes El Corte Inglés (VECI), one of the largest travel agencies in Spain and the Spanish leader of corporate tourism and event organisation. “We welcome the exclusion of business trips from the directive under preparation,” VECI’s spokesperson noted. She added, however, that “it is essential to maintain fair market conditions in competition with online platforms.”
Less enthusiasm in Prague
Association of Tour Operators and Travel Agents of the Czech Republic (AČCKA) has expressed both praise and criticism regarding the updated directive. “The adopted proposal contains several positive simplifications and improvements compared to the European Commission’s original proposal. Still, our key concerns about unnecessary regulation remain,” Kateřina Chaloupková, director of AČCKA, said to EU Perspectives.
“We are concerned that this opens up a wide range of possibilities for airlines and accommodation platforms such as Booking.com to offer dynamic packages without transferring passengers’ personal data,” added Ms Chaloupková. She also said that the Association “welcomes the introduction of an obligation to inform consumers that the services they are purchasing are not a package tour, and that this should be done when offering additional services after the first service has been booked.”
We are concerned that this opens up a wide range of possibilities for airlines and accommodation platforms such as Booking.com to offer dynamic packages without transferring passengers’ personal data. – Kateřina Chaloupková, director of AČCKA
Regarding cancellations, Ms Chaloupková stressed that “travel agency can only be responsible for the services it has contractually agreed to provide and cannot act as an insurance company. Free cancellation by the client can only be granted in exceptional circumstances that have a direct impact on the use of services during the trip”. She added that “according to the directive, the travel agency has the right to offer an alternative trip to the customer so that he/she does not lose their planned vacation.”
