A statement has been released by the institutions following successful negotiations between countries and EU parliamentarians on a proposed law that “clarifies the definition of travel package, conditions for canceling a trip, and travelers’ rights to information, assistance, and refunds under various circumstances, including travel operator bankruptcy or extraordinary disruptions“.
What Will Change with the New Rules?
The new rules aim to facilitate the identification of combinations of travel services constituting a package, thus ensuring protection under the law.
The updated directive also includes detailed provisions on the use of vouchers, which became common during COVID-19, stating that consumers are not obliged to accept them.
Furthermore, if the travel organizer goes bankrupt, customers are entitled to refunds for canceled services from insolvency guarantee funds within six months or, in exceptional cases, nine months.
A clear mechanism for handling complaints was also agreed upon, ensuring issues are addressed reasonably quickly, with a seven-day period for acknowledging receipt of the complaint and a 60-day period for a substantive response.
The co-legislators decided not to standardize the level of penalties for rule violations and not to cap prepayment levels, but member states wishing to do so can impose their own regulations.
What Lies Ahead?
The agreement now needs formal approval by the European Parliament and the Council at the beginning of next year before it becomes effective.
EU countries will then have 28 months to adapt their laws to the new rules and an additional six months to implement the new provisions.
The Journey to This Point
The review comes after many holiday travelers faced unexpected challenges during the COVID-19 pandemic, such as sudden flight cancellations, changes in entry rules, required testing or quarantines, and difficulties in obtaining refunds from travel agencies.
Ongoing uncertainties about health measures and the lack of clear information from some tour operators affected thousands of EU consumers.
The EU directive on holiday packages sets forth guidelines ensuring travelers receive protection, clear information, the right to refunds, and assistance when booking combined travel services.
