New EU rules: package holidays more expensive? Experts warn of consequences!

New EU rules: package holidays more expensive? Experts warn of consequences!

The planned reform of the EU package travel directive could have serious consequences for German package travelers. Industry experts warn the changes could lead to higher costs, particularly for travelers to popular destinations such as Mallorca and Turkey. Germany, as the largest market for package holidays within the EU, records more than 41% of all sales in this sector, which clearly underlines the importance of this regulation. According to that OVB The redefinition of the term “package trip” could result in bookings of various individual travel services automatically being considered as a package trip if they are made within three or 24 hours.

As a result of these new regulations, travel agencies fear that their flexibility will be restricted and that the resulting higher costs will have to be passed on to customers. Norbert Fiebig, president of the German Travel Association, expressed concerns about the potential loss of organized travel in Germany, which could impact the €83 billion annual travel market.

New protection measures for travelers

Another aspect of the upcoming reform concerns new regulations to protect travelers. The European Parliament's Consumer Protection Committee has supported initiatives aimed at clarifying travelers' information and cancellation rights, as well as strengthening the right to reimbursement and repatriation assistance in the event of tour operators' insolvency or unforeseen circumstances. The European Parliament approved the negotiating position with 535 votes in favor to advance these changes.

A central element of this reform is the clarification of the term “package holiday” and the introduction of harmonized rules for vouchers. Consumers therefore have the right to reject vouchers and request a refund within 14 days. The new regulations also stipulate that unredeemed voucher value will be refunded upon expiry and vouchers will be valid for up to 12 months.

Cancellation policy in focus

An important point is the adjusted cancellation conditions. Travelers will have the option to cancel prior to travel without incurring penalties and receive a full refund in the event of unavoidable or exceptional circumstances. Official travel warnings published up to 28 days before travel must also be taken into account. On the other hand, MEPs rejected a proposal to limit advance payments to tour operators to 25% of the total package price.

Negotiations on the final version of the reform began on September 24, 2025, with German travel associations calling for improvements. The impact of this reform could be far-reaching and fundamentally change the way package tours are designed in Germany.