Package holidays: EU introduces new rules to protect tourists

With 537 votes in favour, two against, and 24 abstentions, the European Parliament has definitively approved the updated directive, already provisionally agreed on with EU countries, which clarifies which trips and services can be considered a package holiday, introduces rules on the use of vouchers, and establishes the conditions that will allow customers to cancel their travel plans without incurring costs.

Definition of a package holiday

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

If the travel organiser invites the customer to book additional services, the customer must be informed if these services do not constitute a package with those already booked.

Voucher

The updated directive introduces rules on the use of vouchers, which were widely used by companies during the pandemic. Consumers will have the right to refuse a voucher and instead request a refund within 14 days. Vouchers may be valid for up to 12 months, and customers must be reimbursed for any expired and unused vouchers, in whole or in part. Companies will not be able to limit voucher holders’ choice of travel services. 

Penalties for cancelling trips

Under current rules, customers can cancel their travel plans without penalty if unavoidable and extraordinary circumstances occur at their destination. This possibility will now be extended to unavoidable and extraordinary events occurring at the place of departure or which may significantly affect the journey. The severity of the circumstances will be assessed on a case-by-case basis. Official travel advisories may also be considered in this regard.

Timeframes for handling complaints and refunds

When they receive a complaint about a service, travel organisers must acknowledge receipt within 7 days and provide a reasoned response within 60 days. If a travel organiser goes bankrupt, customers must be reimbursed for cancelled services through the guarantee within six months (nine months for very complex bankruptcies). The standard 14-day refund deadline for trip cancellations remains unchanged. 

After the vote, rapporteur Alex Agius Saliba (S&D, Malta) explained that “these updated rules will protect consumers when something goes wrong with their package holiday. In the event of extraordinary circumstances affecting any part of the trip, travellers will be able to cancel their booking with a full refund.” 

“Clearer rules, greater transparency, and more protection for consumers,” said Fratelli d’Italia-ECR MEP Denis Nesci, shadow rapporteur for the measure, commenting on the approval. “This is an important step towards strengthening confidence in the organised tourism market and ensuring a more solid balance between consumer protection and the sustainability of the sector,” Nesci emphasised.

The EU Council will now have to formally adopt the legislation, which will then be published in the Official Journal. EU countries will have 28 months from the date of entry into force to transpose the new rules into national law and a further six months to start applying the new provisions.