Europe redefines package travel and puts agencies at the center of the deba

Europe redefines package travel and puts agencies at the center of the debate

12-09-25

This week marks a milestone for travel agencies in Europe as the European Parliament prepares to debate and vote on the revision of the Package Travel Directive—a key regulation that could completely reshape passenger protection and the sector’s business model. Although final approval is still some way off, the imminent debate and vote, scheduled for tomorrow and Thursday respectively, have already set off alarm bells within industry associations across the European Union.

At the heart of the discussion are two fundamental issues. First, a redefinition of the concept of a “package holiday,” which until now has covered traditional linked services such as combined transport and accommodation. The IMCO committee (Internal Market and Consumer Protection) proposes extending this definition to include transactions made on the same website within a 72-hour period. This change would mean that the purchase of tickets or additional experiences could be considered part of a package trip, obliging agencies to provide refunds if those services are not used.

At the same time, the legislative proposal introduces stricter limits on advance payments—setting them at a maximum of 25 percent—and broadens the concept of “extraordinary circumstances” that allow travelers to cancel trips without penalty. This broader scope would take into account factors such as a traveler’s place of residence or point of origin at the start of the trip, adding new complexity to the criteria for applying these exceptions.

The sector’s response has been swift and forceful. The ECTAA (European Travel Agents’ and Tour Operators’ Association) and ACAVE (Corporate Association of Specialized Travel Agencies) have expressed strong opposition, arguing that the draft report overlooks essential industry concerns and creates significant uncertainty. In particular, they warn that restricting advance payments would increase the financial burden on organizers, who already maintain guarantee mechanisms to protect customers in the event of insolvency.

In Spain, the view is equally critical. According to Ana Barluenga, legal director of CEAV (Spanish Confederation of Travel Agencies), if these proposals go forward they would open the door to considerable legal uncertainty, with disproportionate financial costs that would hit microbusinesses and small and medium-sized enterprises (SMEs) the hardest.

Beyond the technical debate, this process represents a defining moment for travel intermediation. The directive aims to strengthen consumer rights in the face of cancellations, bankruptcies, and unforeseen changes, establishing a fairer framework. Yet at the same time, it risks undermining agencies’ flexibility and raising the costs of their day-to-day operations.

The implications stretch well beyond this week. After the current deliberations, a new round of negotiations will begin in the autumn under Denmark’s rotating EU presidency, with the goal of reaching final agreements.

In this context, travel agencies are preparing for a legislative battle that will determine the future of package travel and shape the balance between traveler protection and commercial viability. The outcome of this week’s debate could redefine the role of intermediaries in European tourism and set important precedents for the sector’s regulation in the years to come.

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