Tourism associations warn: distortion of competition due to new EU regulations!

Tourism associations warn: distortion of competition due to new EU regulations!

German tourism associations are warning of the threat of distortion of competition due to the planned amendment to the EU package travel directive. These regulations, which relate to the definition of package holidays, the inclusion of business trips and cancellation rules, could have serious consequences for the local travel industry. Associations such as ASR, BT4 Europe, BTW, DRV, DTV, Forum anders reisen, IHA, RDA, VDR and VIR are calling for clear corrections in advance of the upcoming EU trilogue procedure.

In particular, the associations criticize that the planned redefinition of the package holiday could lead to an expansion of the term. This applies to bookings of various individual travel services that should be considered a package trip if they take place within three or 24 hours. The associations emphasize that this expansion goes beyond the basic idea of ​​current law, which defines package tours as an “all-round, worry-free package”.

Criticisms of the directive

A central concern of the associations is a clear distinction between package tours, business trips and individual services. Travel agents should continue to be able to provide various services without being considered organizers. In addition, the planned 28-day period for free cancellations is criticized as disproportionate. The associations demand that only travel advice from the Foreign Office applies as a criterion for unavoidable and exceptional circumstances.

The President of the German Travel Association, Norbert Fiebig, has highlighted the existing “gold standard” requirements for package tours and speaks out against excessive regulation. Industry representatives worry that the changes to cancellation rights, which are intended to allow travelers to cancel free of charge even in exceptional circumstances at their place of residence or departure, could result in additional financial burdens.

The trialogue and the consequences

The EU trialogue begins on September 24th and the associations are calling for a start date for the revised directive on November 1st or January 1st to ensure planning security. According to current statistics, 41 percent of all EU package holidays were sold in Germany, and almost every third holiday trip within the country is a package holiday. It is therefore crucial to create the right framework conditions for the industry to maintain competitiveness.

In addition, tour operators are warning of a possible tightening of the guidelines, which could jeopardize the diversity of travel offers. Dertour, part of the REWE Group, has already pointed out possible price increases that could arise from new booking limits. The German Holiday Home Association also fears that small providers will withdraw from the market.

The associations appeal to politicians to protect consumers without endangering the economic basis of the travel industry. The Federal Association of Consumer Organizations sees the package travel directive as an important instrument for consumer protection, especially in light of the deficiencies in the current directive highlighted by the Thomas Cook bankruptcy and the corona pandemic. Roosbeh Karimi underlines the need to send a “clear signal for package holidays” and to ensure more transparency in the travel market.

For a detailed overview of developments and the full extent of the upcoming changes, it is important to closely follow the debate surrounding the new directive. While the associations are looking for solutions, the question remains as to how the legal framework for package tours will be designed in the future.

For more information: Travel before9 | Bundestag