Business Review - The European Commission, the executive arm of the European Union, has announced that as of July 1, travellers booking package holidays will enjoy stronger consumer rights.

The new EU rules enhance the protection for 120 million holidaymakers this summer.

“The new package travel rules are now adapted to the digital age and the new ways of booking holidays. Travellers will also benefit from new rights and be well protected in case the operator goes bankrupt. The new rules will also make it easier for travel businesses to offer their services cross-border,” said Vera Jourova, commissioner for Justice, Consumers and Gender Equality.

Changes for consumers…

Clearer information for travellers: Businesses must inform travellers whether they are offered a package or linked travel arrangement, and on their key rights through standardised information forms. They must provide clear information on the features and characteristics of the package, its price and any additional charges.

Money-back and repatriation in case of bankruptcy: Companies selling package holidays must take out insolvency protection. This guarantee covers refunds and repatriation in case organisers go bankrupt. This guarantee also applies to linked travel arrangements.

Clearer rules on liability: The organiser of the package is liable if something goes wrong, no matter who performs the travel services.

Stronger cancellation rights: With the new rules, travellers may cancel their package holiday for any reason by paying a reasonable fee. They may cancel their holiday, free of charge should their destination become dangerous for example because of war or natural disasters, or if the package price is raised over 8% of the original price.

Accommodation if the return journey cannot be carried out: Where travellers cannot return from their package holidays, for instance in the case of natural disasters, travellers are granted accommodation for up to three nights if they cannot return from their holiday on time. Additional nights are covered in line with the relevant passenger rights regulations.

Assistance to travellers: The package organiser must also provide assistance to travellers in difficulty, in particular, by providing information on health services and consular assistance.

…and companies

Clearer rules, making cross-border activities easier: Businesses will now have to deal with one set of rules on information requirements, liability and other obligations across the EU. National insolvency schemes are now also recognised across the EU. These measures will allow companies to operate across the EU as if they were at home.

Modernised information requirements no longer based exclusively on travel brochures: the fact that traders will not have to reprint brochures is expected to save them EUR 390 million per year.

Reduced regulatory burden: Business travel arranged under a framework agreement, for instance with a specialised travel agency, will no longer be covered by the Directive.

Member States had to implement the rules in national legislation by 1 January 2018. There was then a six-month transition period, until 1 July, which is the date when the national measures transposing the Directive will start applying.

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