The European Parliament has approved revised rules for organised travel and package holidays, introducing stronger protections for tourists and clearer obligations for travel companies, following lessons learned during the pandemic and several high-profile bankruptcies in the travel sector.
The updated directive clarifies when a booking qualifies as a package holiday, sets limits on voucher use, expands the right to cancel trips without penalties in certain situations, and establishes deadlines for refunds and complaint handling.
The changes are expected to affect travel agencies, tour operators, online booking platforms, and airlines across the European Union, with direct consequences for both the tourism industry and travellers.
Parliament adopted the directive by 537 votes in favour, 2 against, and 24 abstentions.
What the New EU Rules Mean for Travellers
- Clearer definition of package travel: Travel services booked together through connected online systems will be considered a package if personal data is transferred between providers and the booking is completed within 24 hours, ensuring full consumer protection.
- Mandatory transparency when services are not part of the same package: Travel organisers must clearly inform customers when additional services they suggest are not covered by the same contract, reducing confusion during online bookings.
- Right to refuse vouchers and request cash refunds: Travellers will have the right to reject vouchers offered as compensation and instead request a cash refund within 14 days, addressing issues encountered during the COVID-19 travel shutdown.
- Maximum validity period for vouchers set at 12 months: If vouchers are not used within one year, customers must be refunded, fully or partially, preventing companies from delaying payments indefinitely.
- No restrictions on voucher use: Travel companies may not limit customers’ choices of destinations or services when using vouchers.
- Expanded right to cancel trips without penalty: Free cancellation will now apply not only when problems occur at the destination, but also when serious events affect the departure point or significantly disrupt the trip.
- Case-by-case evaluation of extraordinary circumstances: Official travel advisories and safety warnings may serve as guidance when deciding whether to cancel without fees.
- Strict deadlines for complaint handling: Tour operators must acknowledge complaints within 7 days and provide a reasoned reply within 60 days.
- Faster compensation in case of bankruptcy: If a travel organiser becomes insolvent, customers must receive compensation from insolvency guarantees within 6 months, or 9 months in complex cases.
- Refund deadline remains 14 days: The standard refund period after cancellation remains unchanged, providing travellers with legal certainty.
- New rules for online travel platforms: Digital booking systems that combine services from multiple providers will fall under package travel rules, increasing protection for users of online travel agencies.
- Implementation across all EU countries: Member states will have 28 months to adapt their national laws, followed by another 6 months before the new rules fully apply.
Expected Impact on Tourism and Travel Industry
The revised directive is expected to improve consumer confidence in organised travel, especially after the disruptions caused by the pandemic, during which many travellers struggled to obtain refunds or to understand their rights.
Stricter rules for cancellations, refunds, and vouchers could make package holidays more attractive again, while also forcing travel companies to operate with greater transparency and financial security.
For destinations that depend on international tourism, clearer protections may help restore travellers’ trust when booking trips within the European Union.
