Brussels: On Thursday, Members of the European Parliament (MEPs) adopted their position on reforming the Package Travel Directive to ensure better protection for travellers in cases of travel disruption and tour operator bankruptcy.
According to Cyprus News Agency, the position was prepared by the Committee on the Internal Market and Consumer Protection and supports the Commission’s proposal to update traveller protection rules. These updates are based on lessons learned during the COVID-19 pandemic and following several high-profile travel agency bankruptcies.
The proposed legislative update aims to clarify travellers’ rights regarding information, trip cancellations, refunds, and repatriation assistance in the event of a travel organiser’s bankruptcy or unforeseen disruptions. This update also seeks to define what constitutes a travel package and includes harmonised rules for the use of vouchers.
Voucher rules have been a contentious issue, especially during the pandemic. MEPs are advocating for consumers to have the right to refuse vouchers and opt for a refund within 14 days. If a traveller accepts a voucher but does not utilize it, the unused value should be reimbursed upon expiry. Vouchers should be valid for up to 12 months and can be extended or transferred once. They should also be covered by tour operator insolvency guarantees and must equal at least the refund amount the traveller is entitled to. Voucher holders should have priority in choosing travel services and should be able to use them for any travel service offered by the organiser, either entirely or partially.
The updated rules also aim to clarify the conditions under which a trip can be canceled without penalty. If unavoidable or extraordinary circumstances occur at the travel destination or departure point, or affect the journey, travellers should be able to cancel their trips with a full refund. Whether a cancellation is justified should be evaluated on a case-by-case basis, but any official travel warning issued up to 28 days before the scheduled departure should be considered an important factor.
While MEPs largely support the Commission’s proposals, they have rejected the suggestion to limit pre-payments made by clients to travel operators. The Commission proposed that clients should pay no more than 25% of the total package cost when booking early and pay the remaining balance 28 days or less before travel begins. MEPs believe that the decision to limit pre-payments should be left to individual member states.
Alex Agius Saliba, the author of the report, emphasized the importance of strengthening consumer rights to serve citizens better. He noted that extraordinary situations can cause significant stress if travel plans are disrupted, and consumers should be able to cancel and receive a full refund to book another holiday. Saliba highlighted the necessity of enforcing consumer protection and introduced a mandatory complaints mechanism to ensure travellers’ rights are respected.
The European Parliament adopted its negotiating position with 535 votes in favor, 36 against, and 47 abstentions. Interinstitutional negotiations on the final form of the new rules are set to commence in Brussels on 24 September.