Europe increases pressure on travel agencies over commissions

02-07-25

The activities of European travel agencies are once again under threat, this time due to a legislative proposal that could deal a serious financial blow to the sector. The European Commission is promoting a new regulation on passenger rights in air transport, which includes a critical change for agencies: the obligation to refund customers directly in case of cancellations or changes, even if the airline has not yet returned the money to the intermediary.

The European Council, made up of the Member States, is currently analyzing this proposal and is considering an amendment that, if approved, would significantly alter the current operations of the travel intermediation sector. While the stated goal of the regulation is to protect passenger rights—preventing situations like those experienced during the pandemic, where many refunds were indefinitely delayed—the measure could generate serious unintended consequences for travel agencies.