Package holidays: EP approves new rules to protect tourists

The revised directive, which has already been informally agreed with Member States, clarifies which trips and services can be considered a package holiday, introduces rules on the use of vouchers and sets out the conditions under which customers can cancel their trips free of charge.

Definition of a package holiday

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

The text states that if the trip organiser invites the customer to book additional services, they must inform them if these are not part of a package with the services already contracted.

Vouchers

The updated directive introduces rules on the use of vouchers, the use of which became widespread during the pandemic. Consumers will have the right to refuse a voucher and request a refund within 14 days instead. Vouchers will be valid for a maximum of 12 months, and the customer will be entitled to a refund for vouchers that are wholly or partially unused and have expired. In addition, companies will not be able to limit the range of travel services available to voucher holders.

Cancellation fees

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

Deadlines for processing claims and making refunds

Under the new law, tour operators must acknowledge receipt of a complaint within 7 days of receiving it and provide a reasoned response within a maximum of 60 days. If the trip organiser enters into insolvency proceedings, customers must be reimbursed for cancelled services through the insolvency guarantee within 6 months (9 months for highly complex bankruptcies). The current standard deadline of 14 days for refunds for trip cancellations remains unchanged.

Parliament approved the directive by 537 votes to 2, with 24 abstentions.

Statement by the rapporteur

“These updated rules will protect consumers in the event of problems with their holidays. Travellers will be able to recover all their money 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 required to respond to complaints within 60 days. The new directive also provides for robust protection when a company becomes insolvent, to prevent families from ending up footing the bill,” said Alex Agius Saliba (S&D, Malta), Parliament’s rapporteur for the dossier.

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 six months to start applying the new provisions.

More information: European Parliament