Clearer Rules for Booking Package Holidays
The EU has reached a provisional agreement on new rules designed to offer stronger protection for anyone booking package holidays. The update builds on issues that became visible during the pandemic and several high-profile insolvencies, and gives travellers clearer expectations when booking multi-service trips. Parliament and Council negotiators have agreed on new criteria for what counts as a package, firmer refund guarantees, better protection if an organiser collapses, and clearer rules for cancellations and vouchers.
Definition of a travel package
The agreement introduces a clearer definition so travellers can understand when they are covered.
Key points:
- Online combinations booked within 24 hours count as a package if personal data is passed between traders.
- The old category of "linked travel arrangements" is removed.
- If organisers offer add-on services that do not form a package, they must tell customers this before booking.
This helps travellers immediately see whether EU protection applies.
Vouchers: rights and conditions
The revised directive sets out specific rules to prevent confusion around vouchers.
Travellers may:
- Decline a voucher and request a cash refund within 14 days.
- Use vouchers for any service the organiser sells, either a single purchase or several smaller ones.
Vouchers must:
- Be valid for up to 12 months.
- Be refunded automatically if unused.Be covered by insolvency protection.
These rules aim to avoid the uncertainty many faced during the pandemic.
Trip cancellation and refund rights
The update also clarifies what happens when plans are disrupted.
Refunds and cancellations:
- If an organiser goes bankrupt, refunds from the insolvency fund must be paid within six months (or nine in exceptional cases).
- Travellers may cancel without penalty if unavoidable and extraordinary circumstances directly affect their trip.
- Decisions will be taken case by case - a travel warning alone will no longer guarantee a refund.
- If the risk was known at the time of booking, cancellation without a fee will not apply.
“Today’s agreement reinforced the rights of travellers in the EU. We introduced a complaint handling mechanism with mandatory deadlines, making sure people get a timely, reasoned reply from the travel organiser if something goes wrong and they have to file a complaint. We set new rules on vouchers to make sure they are voluntary, and refunded if not used. We shielded travellers better against the trip organiser insolvency and gave them the right to cancel their travel with a full refund in extraordinary circumstances, such as a pandemic. This is a good deal that will help both consumers and businesses in all Europe."
What this update means for future holidays
The agreement signals a more reliable framework for anyone booking multi-service trips across the EU. Clearer definitions, stronger refund protections ,and a stricter complaint-handling process give travellers a better idea of what to expect when plans change unexpectedly. Once formally approved next year, EU countries will have just over two years to adopt the rules, setting the stage for more predictable holiday planning across the bloc.