EU Parliament approves stronger consumer protections for package holidays

The European Parliament has approved updated rules on package travel, aimed at strengthening protections for holidaymakers and clarifying travellers’ rights in the event of disruptions, bankruptcies or extraordinary circumstances.

The revised directive, which still requires formal approval by the Council of the European Union, was adopted by 537 votes in favour, two against and 24 abstentions. The reforms draw on lessons from the COVID-19 pandemic and recent high-profile travel company failures.

Under the new rules, the definition of a “travel package” will be clarified, particularly for online bookings. Combined services purchased through linked booking processes may be considered a package if the first provider shares a traveller’s personal data with other providers and the contracts are completed within 24 hours.

The legislation also introduces clearer rules for vouchers, which became widespread during the pandemic. Travellers will have the right to refuse vouchers and request a refund within 14 days. If accepted, vouchers can remain valid for a maximum of 12 months, after which unused balances must be refunded.

Another key change concerns trip cancellations. Travellers will be able to cancel package holidays without penalties if extraordinary circumstances occur not only at the destination but also at the departure point, or if such events significantly affect the journey.

The directive also strengthens consumer rights in dispute and insolvency cases. Tour operators will have to acknowledge complaints within seven days and provide a reasoned response within 60 days. If a travel organiser goes bankrupt, refunds from insolvency protection schemes must generally be issued within six months.

Once formally adopted, EU member states will have 28 months to transpose the rules into national law, followed by six months before the new provisions become applicable.