On Wednesday 29 November, the European Commission presented its proposal to update EU Directive 2015/2302 on package travel and related travel services to make it more effective in all circumstances, particularly in the event of a major crisis.
This proposal draws on the lessons learned from the damage suffered by package travellers who were not reimbursed at all for their advance payment or who were reimbursed well beyond the 14 days required by this directive, during the bankruptcy of tour operator Thomas Cook in 2019 or the travel cancellations imposed during the Covid-19 crisis.
The aim is to increase the level of consumer protection and improve the functioning of the internal market in the package travel sector, which combines various services (flights, accommodation, car hire - see EUROPE 13301/11).
“Today we are proposing more resilient rules to protect consumers and better guarantees for package travel companies, a sector made up mainly of small and medium-sized enterprises, and even micro-enterprises”, emphasised the European Commissioner for Justice, Didier Reynders, when presenting this proposal. And to stress the importance of increasing legal certainty.
Clearer information. Travellers will receive clear information on whether a combination of services offered to them constitutes a package, as well as information on the identity of the merchant responsible and their rights as package travellers.
The proposal abolishes the current distinction between packages and related travel services, purchased at a single point of sale. If different services are purchased at the same point of sale and at the same time, they will be considered as a package. This applies, for example, to a flight booking followed within 24 hours by a hotel booking on a website.
In the event of a major natural or health disaster or military conflict in the country of departure or destination, travellers may cancel their package.
Increased protection. Advance payments (deposits) for packages at the time of booking may not exceed 25% of the package price, unless the organisers are faced with costs justifying a higher deposit, for example, payment to guarantee a seat or hotel room.
The organisers may not request full payment earlier than 28 days before the start of the package.
When a travel service is cancelled or not provided, package organisers will be entitled to a refund from travel service providers within 7 days, which will allow them to reimburse their customers within the deadline “without jeopardising their cash flow”, the Commissioner said.
When travellers or organisers cancel a package, travellers will receive clear information about their rights in relation to vouchers, including their right to accept a voucher or demand a refund within 14 days.
The proposal specifies that vouchers and redemption rights are covered by insolvency protection. Thus, “if the refund is delayed or if the consumer accepts a voucher and the package tour organiser goes bankrupt before the consumer has been able to use the voucher, the traveller’s money will be protected”, Mr Reynders assured.
Member States will be able to set up national insolvency systems.
The European Consumer Organisation (BEUC) has welcomed the Commission’s efforts to clarify travel warnings in times of crisis and “the proposed minimum requirements for vouchers that will be voluntary for consumers, insolvency protected, and refundable”.
However, BEUC “deplores the absence of stronger rules on enforcement and redress that are urgently needed to ensure laws are respected in the package travel sector”.
See the proposal: https://aeur.eu/f/9v6 (Original version in French by Aminata Niang)