Travel packages will be financially safer and more easily cancellable
In a few years, consumers will be able to enjoy travel packages with improved conditions and better protection thanks to the revision of the Package Travel Directive.
Why it's important
European consumers often book their holidays and travel services through pre-arranged or customised packages. 1 in 10 tourist trips by EU residents is organised in the form of a package, representing 1/5 of total EU tourism expenditure. The Thomas Cook bankruptcy, and the COVID-19 pandemic had revealed significant shortcomings of the existing laws. For instance, consumers faced imposed vouchers, difficulties in asserting their rights and benefit from refunds within the 14 days legal timeframe and many more as explained in our 2021 position paper.
What BEUC did
Following the two years-long institutional discussions, the final deal will provide big improvements for EU consumers thanks to BEUC's recommendations and input. They include:
- Clearer voucher validity rules: Consumers will be able to refuse vouchers and request a refund within 14 days. Vouchers will last up to 12 months, be refundable if unused or used partially, will be extendable with consent, and transferred once. Consumer will be able to use them for any travel service. They will now be covered by insolvency protection and will have to be worth at least the refund amount.
- Stronger cancellation rights: If extraordinary circumstances affect the destination, the departure point, or the journey, consumers will be able to cancel without penalty and receive a full refund. Official travel recommendations will help determine when cancellation is justified. Previous rules only covered only the destination, and did not reflect holidaymakers’ experience.
- Easier access to redress: Travel agents and tour operators will establish a clear complaint-handling system, to ensure that reported issues are dealt with reasonably quickly. This means that traders will have to acknowledge receipt of a complaint within 7 days and give the consumer a reasoned reply within 60 days. The new business to business rules will facilitate compliance with the 14-day statutory refund deadline.
- Stronger insolvency protection: Insolvency coverage will include vouchers and pending reimbursements. A new deadline will ensure faster payouts: if an organiser goes bankrupt, consumers will have to receive their refund within 6 months, or 9 months in exceptional cases, compared to years with the previous rules.
- Clearer package definition and better information to passengers about the travel product they buy: The new rules will clarify which travel services combinations will constitute a package and benefit from protection. This will be coupled with reinforced pre-contractual information requirements for traders to allow consumers to make fully informed choices when booking packages or travel services.
- Limitation of prepayments: At national level, Member States will be able to cap the level of prepayments tour organisers can ask consumers.