With emerging new trends in the travel market, the EU was in need of a revised travel package directive which would provide further protection to consumers, while reflecting the needs of traders. MEPs are seeking to provide better measures which address the interests of both travellers and traders in the digital age.
The package travel directive was adopted in 1990 and it was considered to be an important step forward for consumer protection at the time. It introduced important rights for the consumer when buying pre-arranged holidays and it ensured that consumers receive the necessary information both before and after signing the contract. Among the other measures it introduced, the 1990 travel package directive also covered cases where the organisers went bankrupt. Nevertheless, the directive falls short of fully protecting today´s consumers.
With the increasing use of the internet and with fewer people visiting travel agencies, modernising the package directive became an important necessity. In the 1990s, people were used to buying pre-arranged package holidays but nowadays consumers can choose to customise their holidays. This introduced more ambiguity because it became increasingly unclear in what areas were the consumers indeed protected.
Under the new rules, the scope of the directive will be extended to include customised travel arrangements. Thus, travellers who buy holiday packages online and opt for a customised holiday would be better protected.
Consumers will now have their rights entrenched in different cases. For instance, if the price of the package is altered and it exceeds the limits set, the consumer will have the right to terminate the contract and obtain reimbursement.
In the case where the consumer is unable to return home at the scheduled time, the organiser will have responsibility to find accommodation. However, this applies to unavoidable and unforeseeable circumstances.
Furthermore, the new legislation clarifies that, in the case where the traveller is in difficulty, the organiser has to provide help and assistance even though the organiser is not to blame. This kind of assistance can take the form of providing the consumer with guidance on health services or making alternative travel arrangements.
In the case where the organiser goes bankrupt during the holiday, the new legislation stipulates that the travellers should be repatriated or, whenever possible, they should carry on with their journey. Moreover, consumers will be able to claim EU-wide compensation in case of immaterial damage.
The new measures do not cover packages offered by non-profit-making bodies but, since the measure is a directive and not a regulation, member states are able to rule on these sorts of packages.
The new legislation does not only benefit consumers but it is also intended to support businesses. Cutting unnecessary red tape and creating a level playing field are two important priorities in the revised travel package directive. This is regarded as a step forward towards enhanced competitiveness across EU member states.
Businesses will also benefit because the EU is trying to make sure that national insolvency schemes would be recognised across the EU and that discrepancies would be addressed.
Travellers who buy holiday packages online and opt for a customised holiday would be better protected
Also, the new directive will provide better definitions which reflect today´s realities. With more transparency, businesses will be more aware of their roles and obligations.
The EPP is pushing for this directive to make sure that transparency across the entire travel booking industry is ensured. The directive should be balanced in a way to better protect consumers and also to support businesses when it comes to customised travel packages and the use of the internet.
The EPP believes that consumer rights have to be fully protected and this revised travel package directive is the way forward.
MEPs have already backed the European Commission´s proposals at a committee level. Once the official vote will be taken in plenary, negotiations on the final text of the new legislation between the Council and the European Parliament will start.
By amending the definitions within the travel package directive, among other things, MEPs are seeking to bring further clarity on this policy issue. With the evolving travel market, the EU was in desperate need for better measures which ensure benefits for both traders and travellers.
David Casa is a Nationalist MEP.