The revision of the EU package travel directive: Strengthening consumer protection in a changing travel market.

The principal legal framework governing package travel in the European Union (the “EU“) is Directive (EU) 2015/2302 (the “Directive“), which has been in force since 2018. It’s aim was to modernise European travel law by reflecting the growth of online booking systems and customised travel packages and to provide a high level of protection for consumers purchasing combined travel services.

In simple terms, the Directive applies whenever a consumer purchases a combination of at least two different travel services, such as flights and accommodation, from the same point of sale or through linked online processes within a 24-hour window. In such cases, the travel organiser assumes full legal responsibility for the performance of the package and the consumer benefits from enhanced cancellation rights and financial protection.

Despite the protections introduced in 2015, a series of crises exposed significant gaps in the framework. The collapse of Thomas Cook in 2019 brought to light the weaknesses of Article 17 of the Directive, which obliges travel organisers to hold insolvency protection, a financial guarantee ensuing that, if an organiser goes insolvent, consumers can recover their money or, if already abroad, be repatriated home. While the obligation existed, its scope varied widely across the EU. There were no uniform requirements on whether vouchers fell within the coverage of insolvency schemes and no binding deadlines governing how quickly claims had to be paid out.

The COVID-19 pandemic then exposed a second, equally serious problem. Under Article 12(4) of the Directive, travel organisers were required to reimburse travellers in full within 14 days of a package being cancelled. In practice, this proved unworkable. Organisers had already passed advance payments to airlines, hotels and other service providers before the pandemic struck. Since the Directive contained no business-to-business obligation requiring those suppliers to refund organisers promptly, many travel companies found themselves waiting indefinitely for reimbursement while simultaneously being liable to their customers under the 14-day rule.

The widespread substitution of vouchers for cash refunds, an area entirely unregulated by the Directive, generated further controversy. Several Member States introduced temporary national measures that effectively suspended travellers’ rights to cash refunds, prompting the European Commission to initiate infringement proceedings against eleven Member States.

The Legislative Timeline

These systemic failures led the European Commission to publish a formal proposal to amend the Directive on 29 November 2023. The path from proposal to law unfolded over more than two years with the Council of the EU formally adopting the revision to the Directive on 30 March 2026. The Directive has been amended by Directive (EU) 2026/1024 of 29 April 2026. Member States will have 28 months to transpose these amendments into national law.

Key Amendments

1. Definition of Package Travel

One of the most significant changes concerns the very definition of a “package” under Article 3(2). The revised rules simplify and clarify when combined travel services fall within the Directive’s protective scope. Linked travel arrangements, which are services purchased through separate contracts with different traders, are now expressly excluded from the full protections that apply to packages.

At the same time, combinations of travel services booked online may still constitute a package where personal data is transferred between traders and contracts are concluded within a 24-hour period. This directly addresses long-standing uncertainty surrounding so-called “click-through packages”, cases where a consumer books a flight on one website and is then prompted to book a hotel through a linked platform. Thus, improving legal certainty for both consumers and travel organisers.

2. Strengthened Refund Mechanisms

The most consequential reform is the introduction of the revised Article 22, which for the first time places a direct business-to-business obligation on service providers, in that when a supplier cancels or fails to deliver a service that forms part of a package, they must refund the organiser within seven days. This obligation is designed to enable organisers to meet their own obligations under Article 12(4) (the 14-day consumer refund).

Article 12(4) was also amended to clarify that this refund must be issued automatically upon cancellation due to unavoidable and extraordinary circumstances (as further explained below), without the traveller needing to make a separate formal request. Taken together, these reforms close the gap that proved so damaging during the pandemic.

3.  A Framework for Travel Vouchers

The introduction of Article 12a in the Directive establishes a harmonised EU framework for travel vouchers. Organisers may continue to offer vouchers as an alternative to a cash refund, but acceptance must be entirely voluntary. Before any voucher is issued, the traveller must be expressly informed of their right to refuse it and demand a monetary refund instead. Where a voucher is accepted, the following specific minimum conditions apply:

1. 1. It must be of equal or greater value than the refund due;
   2. It must remain valid for at least 12 months;
   3. It must be transferable once; and
   4. It must be covered by the organiser’s insolvency protection.

These safeguards ensure consumer choice while giving operators a commercially viable alternative to immediate cash repayment.

4. Enhanced Cancellation Rights

Article 12(2) was also amended to provide greater clarity on the concept of “unavoidable and extraordinary circumstances”, more commonly known as force majeure, which entitled travellers to cancel a package without paying any termination fee.

Crucially, such circumstances are no longer limited to events occurring at the travel destination. Circumstances arising at the place of departure or the traveller’s place of residence, for example, a sudden natural disaster making departure impossible, may also trigger free cancellation rights, provided they significancy affect the performance of the package.

5. Improved Insolvency Protection

The reform significantly strengthens the insolvency protection framework under Article 17. Article 17(1) now expressly confirms that insolvency protection must cover both refund claims and vouchers, bridging the gap that left voucher holders unprotected under the existing rules.

The introduction of Article 17(6) introduces a deadline whereby travellers must be refunded within 6 months of submitting the required documentation in the event of insolvency, with a possible extension of 9 months in justified circumstances. These changes directly address the inconsistences exposed by the Thomas Cook collapse.

6. Enhanced Information and Transparency

Article 5(1) of the Directive was amended to expand on the information that organisers must provide to travellers before a booking is confirmed. This information is to expressly include available payment methods, passport and visa requirements, accessibility provisions for persons with reduced mobility, applicable termination fees and the traveller’s right to cancel free of charge in cases of unavoidable and extraordinary circumstances (as explained above).

Organisers must also establish formal complaint handling procedures with set response deadlines, improving accountability across the sector. Through the introduction of Article 16a, consumer complaints must be acknowledged within 7 days and a substantive response must be provided within 60 days.

Conclusion

The revision of the Directive represents an important milestone in the development of consumer protection within the EU. Rather than replacing an established legal framework, the reform strengthens it by addressing the weaknesses exposed by the COVID-19 pandemic, the collapse of Thomas Cook, and the rapid digital transformation of the travel industry.

The amendments introduce a more balanced and effective system for consumer protection. Through improvements to the refund process, clearer and enforceable rules on vouchers, stronger insolvency safeguards and enhanced pre-contractual information requirements, it addresses the most significant shortcomings that left millions of travellers vulnerable when disruption struck.

These changes are far more than technical legal amendments. They reflect a broader commitment by the EU legislature to ensure that consumer rights are meaningful in practice and not merely theoretical. For travellers, the reforms provide greater certainty and confidence when booking package holidays. For businesses, they offer clearer obligations, greater legal certainty and a more consistent regulatory framework across the EU.

As Member States, including Malta, begin the process of transposing the revised Directive into national law within the prescribed 28-month period, attention will turn to its practical implementation. The true measure of success will be whether the new rules deliver the protection and certainty they promise.

The European Commission’s review, scheduled five years after the Directive enters into force, will provide an important opportunity to assess its impact, particularly on the small and medium-sized enterprises that remain the backbone of Europe’s tourism sector.

If the reform achieves its objectives, it will stand as a compelling example of targeted, evidence-based lawmaking: demonstrating that effective legislative reform does not always require starting from scratch but can be achieved by strengthening and refining what already exists.

Disclaimer: This article is for informational purposes only and does not contain or convey legal advice. The information contained in this article should not be used or relied upon in regard to any particular facts or circumstances without first obtaining legal advice. This article was first published in the ‘Independent’ on 17/06/2026.