The European Union has moved a step closer to modernising the rules that protect millions of travellers who book package holidays each year. Parliament and Council negotiators have reached a provisional political agreement to update the Package Travel Directive, introducing clearer definitions, stronger refund rights, and reinforced safeguards in the event of insolvency.
The reform responds to long-standing concerns about the effectiveness of the existing rules. The COVID-19 pandemic and high-profile collapses, such as that of Thomas Cook in 2019, exposed significant vulnerabilities in consumer protection mechanisms. Travellers struggled to obtain refunds, national insolvency funds were overwhelmed, and the rapid rise of online booking created uncertainty about who was responsible when problems occurred.
The updated framework aims to provide that clarity by strengthening traveller rights and ensuring a more resilient system for both consumers and organisers.
Deal to better protect travellers!
— EU Council (@EUCouncil) December 3, 2025
The new rules on package travel will:
✅ improve information for travellers
✅ strengthen consumers' rights
✅ clarify organisers' obligations on issues such as vouchers and refunds
✅ reduce burden for operators
→ https://t.co/TXXBpfbrnQ
A clearer definition of what constitutes a package
A central focus of the reform is the definition of a package. The revised directive removes the category of linked travel arrangements entirely, replacing it with a single, unified definition. This simplification is intended to make it easier for travellers to understand whether their booking falls under EU protection.
Online bookings are a key element of this clarification. Under the new rules, when a traveller’s personal data is transferred from one trader to another, and the additional booking is completed within twenty-four hours, the services will be considered a package. This reflects the reality of modern travel planning, where a holiday may be assembled across multiple platforms in just a few clicks.
The legislation also imposes stronger information obligations. Before booking, travellers must receive clear and accessible details about payment methods, visa and passport requirements, accessibility for people with reduced mobility, and termination fees in case of cancellation. Organisers must also be transparent about insolvency protection arrangements.
When additional services offered by an organiser do not form part of the package, they must inform the traveller. The European Commission considers this particularly important in online environments where consumers may not realise which elements are included under the package contract.
👏Negotiators just reached a deal on the updated Package Travel Directive 🧳✈️. This will shield holidaymakers from unforeseen events and ensure their rights.
— IMCO Committee Press (@EP_SingleMarket) December 2, 2025
PRESS RELEASE 👇https://t.co/DthAAgdsrF@alexagiussaliba @EP_SingleMarket @eu2025dk @EU_Commission pic.twitter.com/dB0hOO7QZ9
Refunds, cancellations, and vouchers: lessons from the pandemic
Refund rights have been a major point of discussion since 2020, when border closures and flight cancellations left millions of travellers with limited options and uncertain compensation.
Under the revised directive, travellers may cancel their trip without penalty when extraordinary and unavoidable circumstances arise at the destination or point of departure. Such situations will be evaluated individually. Official travel recommendations will be taken into account, although an official travel warning alone will not automatically justify termination because warning systems differ significantly among EU countries.
An agreement on new rules to better protect passengers has been reached by @Europarl_EN and @EUCouncil.
— Roberta Metsola (@EP_President) December 2, 2025
The updated rules bring faster refunds for cancellations, clearer conditions for vouchers, and stronger safeguards in case of insolvency.
Thanks to @EP_SingleMarket Chair…
If a traveller was aware of a known risk when booking, they will not be entitled to a penalty-free cancellation.
The rules on vouchers have also been thoroughly revised. Vouchers will remain voluntary, and travellers will retain the right to request a monetary refund within fourteen days. They must be valid for a maximum of twelve months, covered by insolvency protection, and automatically refunded at the end of their validity period if unused. Travellers will be able to spend vouchers on any service offered by the organiser and use their value in one or several transactions. Vouchers may be transferred once.
When organisers themselves cancel a package, they must provide a full refund within fourteen days.
Stronger safeguards in case of insolvency
Insolvency protection is another major pillar of the reform. Travellers affected by the bankruptcy of an organiser will be entitled to a refund within six months from national guarantee funds. In exceptional cases involving a particularly high number of claims or complex cross-border insolvencies, the period may be extended to nine months. Member states will retain the option to impose shorter deadlines.
The updated directive also requires the publication of information on organisers that comply with insolvency protection obligations, improving transparency and oversight.
Complaint handling, pre-payments, and penalties
To support travellers when difficulties arise, the new rules require organisers to establish formal complaint-handling procedures. They must acknowledge receipt of a complaint within seven days and provide a reasoned reply within sixty days. Parliament considers this essential for ensuring accountability across the sector.
The legislation does not introduce EU-wide caps on pre-payments or harmonised penalties. Both issues will remain under the competence of national authorities, allowing member states to introduce stricter rules if they choose.
The Directive must now be formally adopted by the European Parliament and the Council. Following its entry into force, Member States will have 28 months to transpose the Directive into national law.
