On Thursday, MEPs adopted their position on the Package Travel Directive reform, to secure travellers better protection in cases of travel disruption and tour operator bankruptcy.
The updated rules, negotiated by Maltese MEP Alex Agius Saliba, revise the EU’s Package Travel Directive, which governs holidays combining flights, accommodation and other services.
Parliament’s negotiating position, prepared by the Committee on the Internal Market and Consumer Protection, backs the Commission’s proposal to update traveller protection rules based on lessons learnt during the COVID-19 pandemic and in the aftermath of high-profile travel agency bankruptcies.
The overall aim of the proposed legislative update is to specify travellers’ information and trip cancellation rights, and their right to a refund and repatriation help, if their travel organiser should go bankrupt or unforeseen circumstances disrupt their holiday plans. The update would also clarify what constitutes a travel package, and include harmonised rules for the use of vouchers.
Voucher rules
Vouchers were a hot topic during the pandemic; MEPs want to make sure consumers have the right to refuse vouchers and choose a refund within 14 days instead. When a traveller accepts a voucher but does not use it, its unused worth should be paid back to the traveller on expiry. Vouchers should be valid for up to 12 months and extendable or transferable once only.
Vouchers should also be covered by tour operator insolvency guarantees and their value should correspond at least to the sum of the refund to which a traveller is entitled. Voucher holders should have priority when choosing travel services, and they should be able to spend them on any travel service offered by the organiser, either in one go or in parts.
Trip cancellation grounds
The updated rules would also clarify the conditions for cancelling a trip. If unavoidable or extraordinary circumstances arise at the travel destination or departure point before a trip, or affect the journey, travellers should be able to cancel their trips without penalty and with a full refund, MEPs say.
Whether a cancellation is justifiable should be assessed on a case-by-case basis. However, any official travel warning issued up to 28 days before the scheduled departure should become an important element to be taken into account, MEPs say.
Level of pre-payments
Whereas MEPs have otherwise largely supported the Commission’s ideas, they have scrapped the proposal to limit pre-payments made by clients to travel operators. The Commission wants clients to pay no more than 25% of the total package cost to the travel operator when booking early, and to pay the balance 28 days or less before the start of the travel. MEPs, however, think that limiting pre-payments should be up to the individual member states to decide.
Quote
Author of the report Alex Agius Saliba (S&D, MT) said after the vote: “We aim to strengthen consumer rights, which is one of the best ways we can serve our citizens. When it comes to travel packages, extraordinary situations can cause a lot of stress if you are unable to travel. We are making it clear that in such cases, the consumer can cancel the package and receive a full refund within 14 days, allowing them to book another holiday. Consumer protection on paper is nice, but enforcement will be key. That is why we introduce mandatory complaints mechanism for travellers that will help ensure your rights are respected.”
Next steps
Parliament adopted its negotiating position with 535 votes for, 36 against and 47 abstentions. Interinstitutional negotiations on the final shape of the new rules are scheduled to start on 24 September.
