The EU Package Travel Directive: What occurs following the parliamentary vote?
The European Parliament has adopted its negotiating position on the revision of the Package Travel Directive, aiming to bolster travellers' rights in the face of disruptions, cancellations, and tour operator insolvencies. The decision, made on Thursday, 11 September 2021, comes in response to the challenges posed by the COVID-19 pandemic and high-profile bankruptcies such as Thomas Cook in 2019.
Under the new rules, travellers will always have the right to refuse a voucher and opt for a cash refund within 14 days. Vouchers, valid for up to 12 months, should be transferable or extendable once. Importantly, vouchers must be backed by insolvency protection and usable across all services offered by the organiser, either in full or in instalments.
If a voucher is accepted but not used, its value must be reimbursed at expiry. Travellers also have the right to cancel without penalty when "unavoidable and extraordinary circumstances" affect their holiday. Official travel warnings issued up to 28 days before departure should carry significant weight.
The revision addresses legal uncertainties around a new "24-hour definition" that could blur the line between package and standalone services. However, the European Tourism Association (ETOA), representing 80,000 European tour operators and travel companies, has expressed concerns about potential pitfalls and the risk of Europe ending up with 27 different systems for pre-payments, creating complexity for operators working across borders.
The decision on advance payment limits will now be determined by member states. The European Parliament did not accept the European Commission's proposed cap on advance payments for package travel. This move has been welcomed by small and medium-sized tour operators, who believe a rigid EU-wide cap could have undermined their business models.
Consumer groups and industry bodies will lobby during the upcoming trilogue negotiations between Parliament, the Council of the EU, and the European Commission, starting on 24 September. Consumer groups are pushing for strict refund rights and strong insolvency guarantees, while the European Travel Agents' and Tour Operators' Association (ECTAA) has expressed disappointment that the revision does not align more closely with existing passenger rights legislation.
If all goes smoothly, an agreement could be reached in the coming months, allowing for the new rules to enter into force in 2026. The revision of the Package Travel Directive is more than a technical update; it touches on fundamental questions of trust and fairness in tourism, particularly for families and older travellers who value the security of a bundled offer. The vote paves the way for a balanced framework that aims to restore confidence in package holidays.
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