On Thursday 11 September, the European Parliament adopted its negotiating position on the revision of the Package Travel Directive (PTD), a cornerstone of EU consumer protection legislation. The reform aims to strengthen travellers’ rights in the face of disruptions, cancellations, and tour operator insolvencies — issues brought sharply into focus by the COVID-19 pandemic and high-profile bankruptcies such as Thomas Cook in 2019.
With 535 votes in favour, 36 against and 47 abstentions, Members of the European Parliament (MEPs) backed the European Commission’s proposal, while also introducing some of their own amendments. The vote paves the way for the next stage of the legislative process: trilogue negotiations between Parliament, the Council of the EU, and the European Commission, starting on 24 September.
Why it matters
For Europe’s travellers, the revision of the Package Travel Directive is more than a technical update. It touches on fundamental questions of trust and fairness in tourism. The COVID-19 pandemic revealed the limits of the existing system: many consumers waited months for refunds, while operators struggled with liquidity. The collapse of major agencies like Thomas Cook left thousands stranded abroad.
Stronger protections can help restore confidence in package holidays. This sector remains central to European tourism, especially for families and older travellers who value the security of a bundled offer. For businesses, clear and harmonised rules can reduce disputes and ensure a level playing field.
As Cláudia Monteiro de Aguiar, former MEP, argued in an earlier op-ed for Travel Tomorrow, the revision must be “done right” if it is to deliver both consumer confidence and industry resilience. Europe’s legislators now have the chance to get it right. Travellers and operators alike will be watching closely.
Refunds and vouchers: new rules
One of the most sensitive issues relates to vouchers. During the pandemic, many operators offered vouchers instead of refunds, leading to legal disputes and consumer frustration. Under the Parliament’s position:
- Travellers will always have the right to refuse a voucher and opt for a cash refund within 14 days.
- If a voucher is accepted but not used, its value must be reimbursed at expiry.
- Vouchers should be valid for up to 12 months, and transferable or extendable once.
- Importantly, vouchers must be backed by insolvency protection and usable across all services offered by the organiser, either in full or in instalments.
This approach is designed to balance consumer confidence with operational flexibility for travel companies.
Trip cancellations and extraordinary circumstances
Another area clarified is travellers’ right to cancel without penalty when “unavoidable and extraordinary circumstances” affect their holiday. MEPs stress that each case should be assessed individually, but that official travel warnings issued up to 28 days before departure should carry significant weight.
This would mean that if a destination faces a sudden natural disaster, conflict, or public health emergency, consumers can walk away from their package deal without incurring costs, and expect a timely refund.
The debate on pre-payments
The European Commission had proposed to limit advance payments to 25% of the total package price, with the balance due no earlier than 28 days before departure. Parliament rejected this cap, arguing that such financial conditions should remain a matter for member states to decide.
Industry stakeholders welcomed this move. For many small and medium-sized tour operators, advance payments are vital to secure accommodation, flights, and local services. A rigid EU-wide cap, they argued, could have undermined business models.
Industry reaction: concerns about fragmentation
The European Travel Agents’ and Tour Operators’ Association (ECTAA), which represents 80,000 businesses across Europe, cautiously welcomed the Parliament’s vote but warned of potential pitfalls.
“Today’s vote is a step in the right direction, but we cannot afford half-measures,” said Frank Oostdam, President of ECTAA. “If Europe wants to build trust with travellers and strengthen its tourism industry, the final directive must remove sources of confusion and fragmentation.”
ECTAA’s main concern lies with the pre-payment rules. By leaving this decision to member states, the risk is that Europe ends up with 27 different systems, creating complexity for operators working across borders. The association also flagged legal uncertainties around a new “24-hour definition” that could blur the line between what constitutes a package versus a standalone service. This, they argue, could confuse both consumers and businesses, and complicate pricing.
Finally, ECTAA expressed disappointment that the revision does not align more closely with existing passenger rights legislation. For them, travellers should enjoy the same level of protection whether they purchase a flight, a rail ticket, or a full package holiday.
What happens next?
The trilogue negotiations beginning later this month will be decisive. Parliament, Council and Commission will need to reconcile their different approaches on pre-payments, vouchers, and the scope of the Directive. The goal is to reach a balanced framework that delivers robust protection without overburdening small operators.
Consumer groups will push for strict refund rights and strong insolvency guarantees, while industry bodies like ECTAA will lobby for harmonisation and legal clarity. National governments, represented in the Council, may also seek to defend their own regulatory traditions.
If all goes smoothly, an agreement could be reached in the coming months, allowing for the new rules to enter into force in 2026.
