EU Agrees on Revised Package Travel Rules: Key Points for Travellers and Operators

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The European Parliament and the Council have reached a provisional political agreement on the Package Travel Directive (PTD), updating rules that govern traveler protection and the obligations of package travel organizers across the EU.

The agreement aims to strengthen consumer rights while providing legal certainty and flexibility for operators, particularly small and medium-sized enterprises.

“With cleaner and leaner rules, we are making life easier for both consumers and companies, most of which are SMEs,” said Henna Virkkunen, European Commission Executive Vice-President. “This is a successful step in the Commission’s simplification agenda.”

The Package Travel Directive applies to pre-arranged package holidays as well as combinations of travel services, including flights, accommodation, transfers, and excursions. It ensures a high level of protection for travelers, including in extraordinary circumstances such as crises or insolvencies, lessons drawn from the COVID-19 pandemic and high-profile company bankruptcies.

“Travel packages promise a smooth holiday experience, but crises have shown how fragile that promise can be,” said Michael McGrath, Commissioner for Consumer Protection. “These targeted amendments allow consumers to book with confidence under clearer, simpler, and crisis-proof rules.”

Key Provisions of the Revised Directive

Clearer definition of package travel:

• Linked Travel Arrangements are removed, leaving a single, uniform definition.
• Online bookings combining services offered by separate traders within 24 hours are considered a package if personal data is shared.
• Travelers must be informed when additional services booked do not form a package with previous bookings.

Trip cancellation and refund rights:

• Travelers can cancel without a termination fee in the event of unavoidable and extraordinary circumstances.
• Organizers must refund travelers within 14 days if they cancel a package.
• Insolvency of a trader triggers a refund within six months, extendable to nine months in exceptional circumstances.

Vouchers:

• Travelers may voluntarily accept vouchers instead of reimbursement.
• Vouchers must be valid for up to 12 months, transferable once, and correspond at least to the refund value.
• Consumers can use vouchers in one go or in parts to purchase travel services, and they must be covered by insolvency protection.

Improved information for travelers:

• Pre-trip, during-trip, and post-trip information obligations are enhanced.
• Includes payment methods, passport and visa requirements, accessibility, and termination fees.
• Organizers must have complaint-handling arrangements, acknowledging complaints within 7 days and providing a reasoned reply within 60 days.

Flexibility and proportionality:

• No EU-wide harmonization of penalties for infringements.
• Prepayment levels are uncapped, though Member States may impose limits.

“Today’s agreement reinforces travelers’ rights in the EU,” said Alex Agius Saliba, Parliament rapporteur. “We introduced a complaint-handling mechanism with mandatory deadlines, ensured voucher rules are voluntary, and strengthened protection against insolvency. This is a good deal for consumers and businesses alike.”

Next Steps

The provisional agreement must now be formally adopted by the European Parliament and the Council. Following entry into force, Member States will have 28 months to transpose the directive into national law and an additional 6 months to apply the new provisions.

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