The European Parliament has moved to boost traveller protection. Passing the reform of the Package Travel Directive, MEPs achieved a political agreement that emphasises strengthening consumer protections in light of Covid-19. Notably, the new legal framework won the backing of the Committee for Internal Market and Consumer Protection (IMCO) during the 27 January vote.
The rapporteur overseeing the reform, MEP Alex Agius Saliba (S&D/MLT), was quoted as saying that the creation of a compromise around the directive between rival political groups was a positive outcome. Thanks also went to those who helped negotiate the agreement between the trilogue groups, especially the Danish Presidency and the European Commission.
The Package Travel Directive was first adopted in 2015, but it is currently under review for updating. The review will change its provisions, which define EU consumer rights concerning package holiday contracts, cancellations, and unexpected disruptions. The legal reform took off after the travel restrictions caused by Covid-19 had a devastating effect on consumers who were travelling to multiple destinations. The affected consumers found themselves without adequate refunds, voucher offers, or as much as receiving responses to their complaints.
Reform aims
Concerning other concessions to consumer rights, the directive was to include unforeseen circumstances typically excluded under regular cancellation policies. This particular reform aims to clarify the legal basis on which consumers will be able to reclaim their money.
As well as being a substantial update, another purpose of this specific change was to create clarity around the role of vouchers as an acceptable alternative to cash refunds. Vouchers became the preferred option for refunds for cancelled travel experiences during the pandemic. Accepting vouchers as a form of compensation for cancelled experiences will not be compulsory under this directive.
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The directive encompasses that travel service providers use a single process for all complaint cases. Travel service providers must now respond in a certain timeframe to any consumer complaints or refund requests. Mr Saliba was able to inform the MPs that the talks found a balanced outcome.
A rare display of bipartisanship
The enactment of the new directive will require that all travel platforms selling package deals (e.g, hotels and flights) adopt some changes. The ruling will affect all platforms that operate these types of services internationally and across various EU member states. This will also have an effect on national authorities for all these platforms who have the task of ensuring that these platforms comply with these new policies.
The outcome is not only beneficial for consumers but also very beneficial for the travel sector. — MEP Alex Agius Saliba (S&D/MLT)
Specifically, as these rights will apply to consumers who use online platforms to book complicated travel itineraries and package deals across other EU member states, they will require compliance from a significant number of different agencies. This will also include traditional forms of travel agencies.
