The European Parliament has approved updated rules on package travel, introducing stronger protections for holidaymakers across the European Union. The revised legislation,
backed by Members of the European Parliament (MEPs) on Thursday, aims to clarify travel package definitions, strengthen consumer rights, and ensure quicker refunds when trips are cancelled or companies go bankrupt.
The changes were shaped by lessons learned during the COVID-19 pandemic and several high-profile travel company bankruptcies that left many travellers struggling to recover their money.
Clearer definition of package travel
One of the key updates focuses on clarifying what qualifies as a travel package. The new rules make it easier for travellers to understand when a combination of services—such as flights, hotels, or car rentals—counts as a package holiday.
For example, when consumers book services online through linked booking systems offered by different companies, the trip will be considered a package if the first provider transfers the traveller’s personal data to another provider and all contracts are finalized within 24 hours.
Travel organisers will also be required to clearly inform customers when additional services they suggest do not form part of the original package. This measure is designed to prevent confusion and ensure travellers know exactly what protections apply to their bookings.
New rules on travel vouchers
The revised directive also introduces clearer rules on travel vouchers, which became widely used during the pandemic when many trips were cancelled.
Under the new framework, travellers will have the right to refuse vouchers and request a cash refund within 14 days. If a voucher is accepted, it can only remain valid for a maximum of 12 months. Any unused or partially used voucher must be refunded once it expires.
Importantly, travel companies will no longer be allowed to restrict what services voucher holders can book.
Expanded rights to cancel trips without fees
Current EU rules allow travellers to cancel a trip without penalty when “unavoidable and extraordinary circumstances” occur at the destination. The updated legislation expands this protection.
Travellers will now also be able to cancel without fees if such circumstances occur at the point of departure or if they are likely to significantly disrupt the journey.
Each situation will be assessed individually, but official travel advisories and recommendations may serve as guidance when determining whether a cancellation qualifies for a full refund.
Faster complaint handling and refunds
The directive also introduces clearer timelines for handling customer complaints.
Travel organisers will be required to:
- Acknowledge complaints within 7 days
- Provide a detailed response within 60 days
If a travel company becomes insolvent, customers must receive refunds from insolvency protection funds within 6 months. In particularly complex bankruptcy cases, the deadline may extend to 9 months.
The existing 14-day deadline for refunds after a trip cancellation remains unchanged.
Strong parliamentary support
The European Parliament approved the new directive by 537 votes in favour, with 2 votes against and 24 abstentions, demonstrating broad support for stronger consumer protections in the travel sector.
Following the vote, rapporteur Alex Agius Saliba said the updated rules would ensure travellers are better protected when problems arise during their holidays. He emphasized that consumers will be able to cancel trips and receive full refunds in extraordinary circumstances, while acceptance of vouchers will remain voluntary.
What happens next?
The legislation must now be formally adopted by the EU Council. Once approved, it will be published in the Official Journal of the European Union and enter into force.
EU member states will then have 28 months to incorporate the rules into national laws, followed by an additional 6 months before the new provisions begin to apply.
The reforms aim to restore confidence in the travel sector while ensuring that consumers across Europe receive clearer rights, stronger protection, and faster access to refunds when travel plans go wrong. Photo by Roton Piotr, Wikimedia commons.