EU Enhances Consumer Protections for Package Travel

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The European Parliament’s Consumer Protection Committee (IMCO) has adopted updates to the EU Package Travel Directive to bolster traveler protections, drawing on lessons from crises like the COVID-19 pandemic and the Thomas Cook collapse.

The revised rules clarify refund rights, strengthen voucher regulations, and enhance passenger protections during insolvency or major travel disruptions. Key provisions ensure full refunds for unprovided services and repatriation support if a tour operator goes bankrupt. The directive also defines “package” travel and sets clearer information requirements for travelers.

A major focus is on vouchers, a contentious issue during pandemic-related cancellations. Travelers must now be offered a choice between a cash refund (within 14 days) or a voucher, valid for 12 months, extendable or transferable once, and protected against insolvency. Vouchers can be used flexibly, with priority booking for equivalent services.

The rules also strengthen cancellation rights. Travelers can cancel without penalty and receive a full refund in “unavoidable and extraordinary” circumstances at the destination or departure point, regardless of their residence. Official travel warnings issued up to 28 days before departure will carry significant weight in case-by-case assessments.

For travel operators, MEPs rejected a proposed 25% cap on prepayments until 28 days before travel, allowing member states to set their own terms—a win for industry flexibility.

“These updates reflect lessons learned,” said rapporteur Alex Agius Saliba (S&D, MT). “We’re ensuring travelers have clear rights on refunds, vouchers, and cancellations when booking package travel.”

The draft passed IMCO with strong support (35-1) and awaits plenary approval, likely in September, before negotiations with the EU Council begin.

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