The EU Just Rewrote the Rules on Package Travel. So what changes?

The EU has finalised a major rewrite of its Package Travel Directive, and the changes go well beyond fine print. Linked travel arrangements are being scrapped entirely and folded into a clearer definition of what counts as a package. Cancellation rights now cover extraordinary events at departure as well as at the destination. Vouchers must be refundable within 14 days if the traveller asks, capped at 12 months, and automatically refunded if they expire unused. Insolvency protection has been strengthened too, with a six month window for travellers to be reimbursed if an organiser collapses. The directive entered into force in May 2026, but full application is not until March 2029, with member states given 28 months to transpose it into national law. That timeline feels comfortable until you consider how much needs to change behind the scenes: booking systems, contracts, terms and conditions, insolvency arrangements. For agencies and operators selling to EU travellers, the smart move is starting that review now, well before the deadline forces the pace. Antravia continues to track these developments closely for travel businesses navigating cross border compliance.

TRAVEL & HOSPITALITY FINANCE

7/4/20262 min read

The European Union has finalised a major overhaul of its Package Travel Directive, the law that governs how travel agencies, tour operators, and online platforms sell combined trips. Directive (EU) 2026/1024 was published on 8 May 2026 and amends the original 2015 framework. The changes are the EU's response to lessons learned from the collapse of Thomas Cook and the disruption of the Covid years, when refund and insolvency rules were tested and found wanting. For anyone running a travel business with EU customers, the practical impact will be felt long before the rules become fully binding.

Linked travel arrangements are gone

The old category of "linked travel arrangements" sat awkwardly between full packages and single bookings, offering travellers partial insolvency protection that was hard to apply consistently. The EU has scrapped the concept entirely and folded these bookings into a clearer, broader definition of "package."

Click through bookings get a clear test

If a traveller books one service online and is then steered to book another with a different trader, the combination now counts as a package when the first trader passes the traveller's data to the second and all contracts are signed within 24 hours. This closes a grey area that has caused confusion for years.

Cancellation rights widen

Travellers could already cancel without penalty when extraordinary circumstances hit their destination. That right now extends to extraordinary events at the point of departure, or anything serious enough to significantly affect the journey itself.

Vouchers come with real protections

Vouchers were widely used during the pandemic, often without much choice for the traveller. Under the new rules, travellers can refuse a voucher and demand a refund within 14 days. Vouchers are capped at 12 months, must be transferable once, and any unused or expired value must be refunded automatically.

Insolvency protection gets stronger

If an organiser becomes insolvent, travellers must be reimbursed within six months. The new rules also extend insolvency protection to open refunds, closing a gap that left some travellers exposed.

Complaints need a response within 60 days

Organisers will be required to respond to traveller complaints within two months, giving consumers a clear timeline instead of an open ended wait.

Timing matters more than it looks

The directive entered into force in May 2026, but it will not apply in practice until March 2029. Member states have 28 months to write the rules into national law, followed by a further six month transition before they bind operators directly. That sounds distant, but updating booking systems, contracts, and terms and conditions is not a quick job. Agencies and operators with EU facing customers should start reviewing their processes now rather than waiting for the deadline to arrive.

EUR-Lex – Directive (EU) 2026/1024

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The EU Just Rewrote the Rules on Package Travel. So what changes?

Antravia, Travel Finance

Antravia,
Travel Finance