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BackAn update of travel law has been a topic in Brussels for years. The aim is to strengthen the rights of passengers, air travellers and package holidaymakers. The EU Commission finally presented its proposals in November 2023, also prompted by the crises of recent years. Adoption in the last legislative period was therefore no longer possible. The new EU Parliament is now starting its work and discussions are already underway in the Council. But how well will Europe's travellers be protected in the future?
The Covid-19 pandemic, numerous natural disasters and insolvencies in recent years have clearly shown how fragile many of our systems are. Many travellers who had saved for a long time for their well-deserved holiday were also affected, being left with the costs incurred without receiving the service they paid for. The EU's new travel rights package is now intended to transpose the lessons learned from these crises into law in order to better protect travellers in future. This concern is welcomed in principle by the European Consumer Organisation BEUC. However, like AK, it also sees numerous opportunities for improvement. What is the core issue?
Reliable support when problems arise
Communication is key. The EU Commission agrees and now plans to counteract by law the deficiencies in customer communication shown by some airlines. According to the EU Commission's proposal, the new regulation shall lay down precise provisions stipulating that air passengers must be able to communicate quickly and effectively with airlines or intermediaries. AK demands that in addition postal and e-mail addresses as well as telephone numbers must be clearly shown, and that the regulation also includes rail, ship and bus operators.
If a flight has been booked via a booking platform, it is often unclear who is responsible for reimbursing the costs if problems arise: the airline or the intermediary. The situation is even less clear in the case of multimodal travel, for example if a flight has been missed due to a delayed train and the trip was booked as a package via a booking platform.
The new travel rights package shall provide more clarity. It will make air travel intermediaries much more directly responsible for providing travellers with support and, if necessary, compensation. In the case of multimodal journeys, it also requires at least assistance to be provided in the event of missed connections. It is unfortunate that the new rules on reimbursement only cover air travel intermediaries, but not rail or bus intermediaries. From the passengers' point of view, it is incomprehensible why, in the event of a missed connection – through no fault of the passenger – it is not always possible to continue the journey at no additional cost, and why bus passengers are often still not compensated for delays.
Protection in the event of organiser insolvency
In Austria, package holidays are currently subject to a maximum deposit of 20% within 20 days prior to departure. Furthermore, payments may be accepted no earlier than 11 months before the end of the trip. These regulations are designed to protect travellers from being left out of pocket in the event of the tour operator's insolvency. The European Commission’s proposal provides for a limit on the deposit to 25% and for the total amount to be due no earlier than 28 days before the start of the trip. In addition, exceptions to the deposit restriction are planned, which, in the opinion of AK, could be very broadly interpreted in practice. These regulations would, in any case, not improve the legal position for Austrian travellers. AK demands, at the very least, the maintenance of the current Austrian level of protection. Furthermore, AK supports the demand of the European Court of Auditors for equivalent protection for flight bookings, including insolvency insurance.
There have been plenty of examples of unavoidable and extraordinary circumstances in recent years, such as the Covid-19 pandemic or the forest fires in Greece in 2023. A special right of withdrawal already applied if, as a result, a package holiday had therefore not been feasible; it is now to be made more precise in favour of travellers. However, anyone who has booked a hotel and flight separately is still left out of pocket. Even if the hotel has already burnt down, there is no right of withdrawal for the flight as long as it is contractually feasible. Here, AK continues to demand an analogous right of withdrawal at no cost for flight bookings and other individual services (including hire cars).
More effective enforcement
In the event that the package travel contract has been terminated early, the EU Commission's draft now provides for an automatic refund mechanism. The tour operator must carry out the refund within 14 days, regardless of whether the traveller expressly requests it or not. The refund can still be made in the form of vouchers, which are expressly protected against insolvency. However, it must be clearly stated that acceptance is voluntary and that a cash payment can also be requested. If the voucher is not redeemed within its period of validity, a refund will automatically be made.
Unfortunately, it is common practice in the travel and transport industry for passenger rights to be insufficiently adhered to. This is already the case under the existing legislation and is unlikely to change despite the planned tightening. Apparently, it often makes more economic sense in this industry to pay flat-rate penalties. The EU has already found a solution for such cases in other legal acts dealing with particularly financially strong companies, such as the Digital Services Act or the GDPR. There, minimum penalties are based on the annual turnover of the companies concerned in order to create effective incentives for legally compliant behaviour. AK also calls for a similar model for the travel and transport industry in order to finally ensure effective law enforcement. A national enforcement body with more extensive powers to help affected travellers could help to ensure that no one is missing out.
Further information
EU Commission: Improved rights and better information for travellers
BEUC: The EU can do better to protect passengers and their rights
BEUC: Revision of passenger rights regulations
BEUC: Proposal for a Package Travel Directive Proposal. A first step to guarantee robust consumer protection
European Court of Auditors: Air passenger rights during the COVID-19 pandemic - Key rights not protected despite Commission efforts (Special Report 15/2021)
AK EUROPA: Passenger rights under review
AK EUROPA: Corona crisis and the consequences for passengers
AK EUROPA: Thomas Cook Bankruptcy: EU Parliament demands better protection for travellers
AK EUROPA: EU Parliament starts consultations on new rules for package travel and assisted travel arrangements