Package holidays: European Parliament approves new rules to protect tourists

The European Parliament on Thursday approved a revision of the regulations on package travel with the aim of strengthening tourist protections following the problems experienced during the pandemic and several business failures in the sector. The new directive introduces clearer rules on which services are considered a package holiday, regulates the use of vouchers, and expands travelers’ rights in cases of cancellation and refunds.

The text, previously agreed with the Member States, seeks to offer greater security to consumers and guarantee 
faster responses from companies to claims or extraordinary situations that affect travel.

DEFINITION OF A VACATION PACKAGE

The new rules will make it easier to determine which combinations of travel services constitute a package . This will be determined primarily by when and how the combination of services is booked. For example, in an online purchase where linked booking processes allow combining services from different providers, these will be considered a package if the first company transmits the traveler’s personal data to the other providers , and if the contract for all services is finalized within 24 hours.

The text states that, if the tour organizer invites the client to book additional services , they must inform the client if these services are not part of a package with the services already booked.

BONDS

The updated directive introduces rules on the use of vouchers , the use of which increased during the pandemic. Consumers will have the right to refuse a voucher and request a refund instead within 14 days. The maximum validity of vouchers will be 12 months, and customers will be entitled to a refund for vouchers that are fully or partially unused and have expired. Furthermore, companies will not be allowed to restrict the range of travel services available to voucher holders.

CANCELLATION FEES

Under current rules, customers can cancel their trips without penalty if unavoidable and extraordinary circumstances arise at their destination. The new directive extends this coverage to unavoidable and extraordinary events at the point of origin or events that have the potential to significantly affect the trip. The assessment of whether the circumstances are serious enough to warrant free cancellation will be made on a case-by-case basis . In this context, official travel advice may serve as guidance, the directive states.

TIME LIMITS FOR PROCESSING CLAIMS AND MAKING REFUNDS

Under the new law, tour operators must acknowledge receipt of a complaint within 7 days and provide a reasoned response within 60 days . If the tour operator enters insolvency proceedings, customers must be reimbursed for canceled services through the insolvency guarantee within 6 months (9 months for highly complex bankruptcies). The current standard 14-day refund period for trip cancellations remains unchanged.

Parliament approved the directive by 537 votes in favor, with 2 against and 24 abstentions.

STATEMENT BY THE SPEAKER

“These updated rules will protect consumers in case of problems with their holidays . Travelers will be able to get a full refund if extraordinary circumstances arise that affect any part of their trip. Acceptance of vouchers by customers will be voluntary, and they will always have the option of a refund instead. In addition, agencies and operators will be obliged to respond to complaints within sixty days . The new directive also provides robust protection when a company becomes insolvent, to prevent families from ultimately bearing the burden,” noted Alex Agius Saliba (S&D, Malta), the Parliament’s rapporteur for the bill.

NEXT STEPS

The Council must now formally adopt the legislation . The text will enter into force after its publication in the Official Journal. EU countries will have 28 months from the date of entry into force to incorporate the new rules into national law and a further 6 months to begin applying the new provisions.