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Rural Tourism Cluster

With the “seal” of the European Parliament, the new rules for package travel | What is provided for cancellations and refunds

The European Parliament has given the “green light” to the revision of the rules on package travel, strengthening the protection of travellers in light of the lessons learnt from the pandemic and a number of high-profile bankruptcies.

The updated directive, which was approved today, Thursday 12 March, by the European Parliament and which has already been provisionally agreed with EU Member States, clarifies which trips and services can be considered package holidays, introduces rules on the use of vouchers and sets out the conditions under which customers can cancel their travel plans free of charge.

Definition of package travel

The new rules should make it easier to understand which combined travel services constitute a package. This is primarily determined by when and how the combination of services is booked. For example, on an online marketplace where interconnected booking processes allow for the combination of services offered by separate providers, these will be considered a travel package if the first provider transmits the traveller’s personal data to the other providers and the contract for all services is concluded within 24 hours.

If the tour operator invites the customer to book additional services, the customer must be informed whether these will not be included in the package that has already been booked.

Vouchers

The revised directive introduces rules on the use of vouchers to compensate travellers, which were widely used during the pandemic. Consumers will have the right to refuse a voucher and request a refund within 14 days.

Vouchers will be valid for up to 12 months and customers should receive a refund for any unused vouchers, or those that have expired either partially or in full. Companies are not permitted to restrict the choice of travel services available to voucher holders.

Trip cancellation fees

Under current rules, customers can cancel their travel plans without incurring cancellation fees or penalties if unavoidable and extraordinary circumstances arise at their destination. This will now be extended to unavoidable and extraordinary events that occur either at the point of departure or have the potential to significantly affect the trip.

The decision as to whether the circumstances are serious enough to warrant free cancellation will be made on a case-by-case basis. Official travel advisories may serve as guidance for this purpose.

Deadlines for dealing with complaints and refunds

When receiving a complaint about a service, tour operators will have to acknowledge receipt within 7 days and provide a reasoned reply within 60 days. If the tour operator goes into liquidation, customers must receive a refund for cancelled services from the insolvency guarantee within 6 months (9 months in the case of complex liquidations). The standard 14-day deadline for refunds in the event of a trip cancellation will remain unchanged.

Parliament adopted the directive by 537 votes to 2, with 24 abstentions.

Following the vote, Parliament’s rapporteur on the matter, Alex Agius Saliba (S&D, Malta), said: “These revised rules will protect consumers when something goes wrong with their package holidays. In the event of extraordinary circumstances affecting any part of their trip, travellers will be able to cancel their trip and receive a full refund. Accepting vouchers will remain optional for consumers, who will be able to request a refund. Travel companies will be required to respond to complaints within 60 days, and robust insolvency protection will ensure that, in the event of bankruptcy, financial losses are not passed on to families.”

The Council now needs to formally adopt the legislation. The text will then be published in the Official Journal and enter into force. EU Member States will have 28 months from the date of entry into force to transpose the new rules into their national legislation and a further six months for the new provisions to come into effect.

Source: money-tourism.gr