European Parliament approves new EU rules on package travel protection

The European Parliament approved updated rules on package travel, introducing clearer definitions, voucher regulations and strengthened consumer protections, drawing lessons from the pandemic and recent high-profile travel company bankruptcies.

The European Parliament approved revised rules on package travel, strengthening consumer protection and incorporating lessons learned from the pandemic and recent high-profile bankruptcies in the travel sector.

The updated directive, which has already been provisionally agreed with EU member states, clarifies which combinations of travel services qualify as a travel package. It also introduces rules on the use of vouchers and defines the circumstances under which travellers can cancel their plans without incurring cancellation fees.

Under the new framework, the definition of a travel package will depend largely on when and how travel services are booked together. For example, when travellers purchase services online through linked booking processes that combine services offered by separate providers, the arrangement will be considered a package if the first provider transfers the traveller’s personal data to the other providers and the contract for all services is completed within 24 hours.

If a travel organiser invites customers to book additional services, travellers must be informed if those services do not form part of the same package as the services already booked.

The directive also establishes rules governing the use of vouchers, which became widespread during the pandemic. Travellers will have the right to refuse vouchers and request a monetary refund within 14 days instead.

Vouchers may be valid for a maximum of 12 months. If a voucher expires fully or partially unused, customers must receive a refund for the remaining value. Companies will not be permitted to restrict the range of travel services available to voucher holders.

Existing rules already allow travellers to cancel package holidays without cancellation fees if unavoidable and extraordinary circumstances arise at the travel destination. The revised directive extends this right to circumstances occurring at the place of departure or situations that could significantly affect the journey.

The determination of whether such circumstances justify free cancellation will be assessed on a case-by-case basis, with official travel recommendations potentially serving as guidance.

The directive also introduces deadlines for complaint handling and refund procedures. When receiving a complaint regarding a travel service, tour organisers will be required to acknowledge receipt within seven days and provide a reasoned response within 60 days.

If a tour operator becomes insolvent, travellers must be refunded for cancelled services through insolvency protection mechanisms within six months, or within nine months in particularly complex bankruptcy cases. The existing 14-day deadline for refunding cancelled travel remains unchanged.

The directive was adopted by the Parliament with 537 votes in favour, two against and 24 abstentions.

Following the vote, the Parliament’s rapporteur Alex Agius Saliba said: “These updated rules will protect consumers when something goes wrong with their package holiday. In the case of extraordinary circumstances that affect any part of their trip, travellers will be able to cancel with a full refund. The acceptance of vouchers by consumers will remain voluntary, and they can request their money back instead. Travel companies will have the obligation to respond to complaints within 60 days and robust insolvency protection will ensure that when a bankruptcy occurs the financial loss is not shifted on families.”

The next step is formal adoption of the legislation by the Council. The directive will then be published in the Official Journal of the European Union and enter into force.

EU member states will have 28 months from the date of entry into force to transpose the new rules into national legislation and an additional six months before the provisions begin to apply.