Another key change expands the traveler’s right to cancel without penalty when “extraordinary and unavoidable circumstances” arise—whether at the place of origin or destination. This includes pandemics, natural disasters, or similar events. If the traveler chooses to cancel, the organizer must offer either a full refund or, if preferred, a credit voucher. Crucially, organizers must inform customers about the voucher’s conditions, validity, and use, and must ensure it is protected in case of the company’s insolvency.
The revised directive also strengthens protection against insolvency of package travel organizers. In cases of bankruptcy, consumers will have access to guaranteed mechanisms that ensure timely reimbursement of any payments made, preventing situations in which travelers are left stranded or out of pocket. Member States may, if deemed necessary, create reserve funds or similar mechanisms to further reinforce financial safeguards for travelers.
The Parliament has also clarified the legal definition of a package holiday versus “linked travel arrangements.” This distinction matters because many bookings are made by combining services separately—such as booking flights on one website and accommodation on another—leaving travelers in a legal gray area. The updated definition eliminates this ambiguity, ensuring that more travelers are clearly protected under EU rules.
Travel agencies, tour operators, and online booking platforms have reacted cautiously, noting that while the new rules are largely positive for travelers, they could also lead to higher operational costs, greater administrative complexity, and possible price increases. Organizations such as Spain’s CEAV have pointed out that, although many changes are welcome, there are still “lights and shadows,” as some requirements may challenge existing business models.
Once the final text is formally approved—following agreement between the Parliament, the European Commission, and the Council—Member States will have a transition period to transpose the directive into national law. During this time, travel operators will need to review contracts, sales conditions, cancellation policies, advance payment practices, voucher management, and insurance coverage to ensure compliance with the new standards.
In summary, this revision of the Package Travel Directive marks a major step forward in consumer protection across Europe’s tourism sector. It strengthens long-demanded rights, enhances transparency, reduces financial risks for travelers, and compels the industry to raise its contractual and accountability standards. For European travelers, it means greater security when booking multi-service holidays and less uncertainty when facing unforeseen events. With this move, the European Union seeks to balance tourist rights with industry viability, promoting a fairer, more reliable, and more transparent travel market.
