Photo source: European Parliament / ©AP Images/European Union – EP
IMCO, the European Parliament’s Consumer Protection Committee, has adopted new rules to update the EU Package Travel Directive, aiming to strengthen traveler protections in light of past crises like the COVID-19 pandemic and the collapse of Thomas Cook.
The revised legislation clarifies refund entitlements, expands rules around vouchers, and reinforces passenger rights in cases of insolvency or major travel disruptions.
A central aim of the update is to ensure that travelers can secure full refunds for services not rendered, as well as receive repatriation assistance, if a tour operator goes bankrupt. The revised directive also details what qualifies as a “package” and outlines clearer information requirements before, during, and after travel.
One of the most notable changes concerns vouchers, a hot-button issue during pandemic-era cancellations.
Under the new rules, consumers must be offered a choice between a voucher or a cash refund – payable within 14 days. Vouchers would be valid for 12 months, extendable or transferable once, and must be backed by insolvency protection. Travelers would also gain flexibility to use the voucher in full or in parts, and receive priority in booking services with their value.
MEPs also refined rules around trip cancellations. Travelers would retain the right to cancel without penalty and receive a full refund in the event of “unavoidable and extraordinary” circumstances at the destination or point of departure—regardless of the traveler’s place of residence. While decisions will be assessed case-by-case, official travel warnings issued up to 28 days before departure are to be given significant weight.
For travel operators, a key shift came with the rejection of a Commission proposal to cap prepayments at 25 percent of the total package price until 28 days before travel. MEPs instead left this decision to individual member states – a win for companies preferring flexibility in their payment terms.
“This is about lessons learned,” said Alex Agius Saliba (S&D, MT), rapporteur for the file. “We want to ensure that travelers are protected when booking a package deal, with clear rights around refunds, vouchers, and cancellations.”
The draft rules passed the committee with broad support (35 votes to 1). The file now heads to plenary, likely in September, before interinstitutional negotiations with the EU Council can begin.
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