The Right to Refund & More: EU’s New Protections for Travelers

In a press release, the European Union announced new protections for travelers heading to Europe on vacation.

The European Union consists of 27 countries, including some of the most popular destinations like France, Spain, Italy, and Germany.

If you're planning a trip to one of those destinations, you might have more rights when it comes to holiday bookings... but not quite yet.

The EU introduced new rules regarding vacation packages. While the changes have been initiated, and a deal has been made, they do still need to be formally approved by both the European Parliament and Council before they're set into force.

But what are the changes? And how will they help you, the traveler? We have the most recent details.

Heading to Europe soon? Don't forget your Schengen travel insurance.

Sick of vouchers? Travelers could be owed full refunds

During the COVID-19 Pandemic, many travelers had their vacations canceled.

Under these new regulations, holiday-goers would have more control over how they're compensated for cancellations.

Keep in mind, these new guidelines apply to travel packages, not individual flights or hotel stays.

If a package is canceled (for qualifying reasons), travelers will be entitled to either a voucher or a refund, so long as it is requested within 14 days.

In the past, companies could refuse a refund and provide vouchers instead. If this new legislation is adopted, travelers will have the right to choose a refund, and the organiser/company must oblige.

If something "unavoidable and extraordinary" happens before your trip, at either the destination itself or your departure point, you'd also be entitled to cancel your trip and receive a full refund, not just a partial one.

This, again, looks back to issues that came up during the Pandemic.

Still, these circumstances would be looked at on an individual, case-by-case basis.

The European Union also specifies that official travel warnings alone aren't sufficient grounds. It really does need to be something "unavoidable and extraordinary."

Prefer a voucher? More rights there, too

Those who choose vouchers would have more rights as well.

Vouchers would be at the value of the refund and redeemable for up to 12 months.

On top of that, travelers would be able to apply their voucher to any service the organizer/company provides - even if it is different from the one they originally booked.

If the voucher ultimately isn't used, they, too, would still be entitled to a refund. The same holds true if you only use part of the voucher's value.

The ownership would be on the company/organizer to proactively refund you, without you needing to lift a finger and remind them.

And, under the proposed updates, vouchers would be extendable or transferable one time.

Vouchers would also be covered by insolvency guarantees (should a company, unfortunately, become bankrupt).

Tired of waiting? There would be guidelines for that

Should the proposed legislation go into effect, organizers/companies would be required to have a clear process and system for handling complaints.

Additionally, they'd need to deal with issues "reasonably quickly", according to the information available.

Receipt of a complaint would need to be acknowledged within 7 days, and a "reasoned reply" (i.e., a solution) would have to be sent within 60. This is to prevent affected travelers from having to wait weeks or months on end for a resolution.

"This is a good deal that will help both consumers and businesses in all Europe." - Alex Agius Saliba, the Parliament's rapporteur for the file.

The TLDR: Summary of changes

If adopted by the Parliament and Council, travelers who book travel packages would:

• Be able to choose between a voucher or a refund for qualifying cancelled trips.
• Those who choose vouchers could use their voucher for any service the organizer/company offers.
• If a traveler doesn't use their voucher within the allotted time, they'd receive a refund.
• If a traveler only partially uses the voucher, they'd receive a partial refund.
• Vouchers would have insolvency guarantees and would be allowed to be extended or transferred once.
• Trips canceled for "extraordinary and unavoidable" reasons (such as a Pandemic) would entitle travelers to full refunds.
• Organizers/companies would be required to offer a clear complaint process, and respond in a timely manner (acknowledgment within 7 days and a reasoned reply within 60).

FAQs

When do the changes go into effect?

Why was this legislation introduced?