The European Parliament has given the go-ahead to revised package travel rules, increasing protection for tourists following the experiences of the pandemic and several major bankruptcies, including by establishing clear rules on tax-free and penalty-free cancellation under certain conditions.
Europe is revising travel rules to boost protection for tourists
The updated directive, already provisionally agreed with the EU member states, brings clarifications about the trips and services that can be considered a “travel service package”, introduces rules on the use of vouchers and sets the conditions under which customers can cancel travel plans free of charge.
What is “travel package”
The new rules should allow easier identification of combinations of travel services that constitute a package. This is primarily determined by when and how the combination of services is booked. For example, in the case of an online purchase where the associated booking processes allow combinations of services offered by different merchants, they will be considered a package if the first merchant transmits the traveler's personal data to the other merchants and the contract for all services is concluded within 24 hours.
If the travel organizer invites the customer to book additional services, the customer must be informed if they would not form a package with previously booked services.
Europeans can refuse the voucher and ask for a refund
The updated directive introduces rules on the use of vouchers, which have been widespread during the pandemic. Consumers will have the right to refuse a voucher and request a refund within 14 days. Vouchers can be valid for a maximum period of 12 months, and customers must be refunded any fully or partially unused vouchers, as well as expired vouchers. Companies cannot limit the choice of travel services for voucher holders.
Trip cancellation fees
Under current rules, customers can cancel their travel plans without cancellation fees or penalties if unavoidable and extraordinary circumstances arise at the travel destination. This will now be extended to unavoidable and extraordinary events that also occur at the point of departure, as well as those that have the potential to significantly affect travel. Whether the circumstances are serious enough to warrant free cancellation would be determined on a case-by-case basis. Official travel advisories can serve as guidance in this regard.
Deadlines for resolving complaints and making refunds
When receiving a complaint about a service, tour operators will have to acknowledge receipt within 7 days and provide a reasoned response within 60 days. If the tour operator goes bankrupt, customers will have to be reimbursed for canceled services from the insolvency guarantee within 6 months (9 months for very complex bankruptcies). The standard 14-day refund period for trip cancellations will remain unchanged.
Parliament adopted the directive with 537 votes in favor, 2 against and 24 abstentions.
“These updated rules will protect consumers when problems arise with their travel packages. In the event of extraordinary circumstances affecting any part of the trip, travelers will be able to cancel with a full refund. Consumers' acceptance of vouchers will remain voluntary and they can claim their money back. Travel companies will be required to respond to complaints within 60 days, and robust insolvency protection will ensure that when a bankruptcy, the financial loss is not passed on to customers,” said Parliament's rapporteur Alex Agius Saliba (S&D, Malta).
States have two and a half years to transpose the directive
The Council must now adopt the legislation formally. The text will then be published in the Official Journal and enter into force. EU countries will have 28 months from the date of entry into force to transpose the new rules into national law and a further 6 months to start applying the new provisions.
