The end of passenger ping-pong. The EU is introducing big changes to travel

The proposals for new passenger regulations presented on Wednesday mainly concern the reform of the regulations already in force, including: the Passenger Rights Directive, the Package Travel Directive and the regulations on combined transport regulations, when a passenger purchases a journey by different means, e.g. by plane and bus. The new versions of the regulations are intended to make it easier for passengers to seek compensation for a canceled or delayed trip, even in situations where they purchased the trip through an intermediary and not directly from the carrier. Nowadays, it happens that both of them use a kind of ping-pong, flipping each other.

The EU wants to end passenger ping-pong

– Sometimes the passenger does not know who to turn to for compensation, either the operator from whom he or she purchased the trip, or the carrier. It also happens that he receives compensation, but less operating costs. This is illegal, said EU Transport Commissioner Adina Valean during Wednesday’s press conference. Now the process is to be simplified to the benefit not only of consumers, but also of travel agencies. Under the new regulations, carriers will be obliged to return money to intermediaries within seven days of reporting. They will have another week to pass them on to passengers.

– This way, travelers will receive compensation within the statutory 14 days, and travel agencies will not have problems with financial liquidity. We know that these are often medium and small, and sometimes even micro, enterprises that have difficulty paying out funds from their own funds, added EU Commissioner for Justice Didier Reynders.

The loopholes in the law need to be plugged

It wasn’t always so obvious. Covid-19 and the long-term crisis in the tourism sector have exposed gaps in EU legislation on passenger rights, especially when it comes to ticket refunds and canceled holiday trips purchased in the form of packages in travel agencies. During the pandemic, waiting times for compensation for canceled trips were often extended, and passengers were often forced to accept travel vouchers instead.

It will now still be possible to offer travel vouchers for canceled flights, but consumers will be able to refuse them. Moreover, if they are not used, passengers will be entitled to a refund. Tourists purchasing holiday packages will also be better protected.

The collapse in 2019 of one of the largest and oldest travel agencies in Europe, i.e. Thomas Cook, left 600,000 people abroad. tourists, painfully showed that EU regulations lack provisions protecting travelers in such situations. When the agency declared insolvency virtually overnight, travelers were left stranded with virtually no possibility of obtaining compensation.

Under the new regulations, travel agencies selling organized trips will not be able to charge customers a prepayment higher than 25%. trip costs; higher booking costs will be justified only in exceptional situations, when agencies are obliged by carriers or hoteliers to cover the entire cost of the ticket or stay. Otherwise, travel agencies should not require full payment for the trip earlier than 28 days before its commencement. This is to protect against the situation in which the clients of the British office were put.

Complaints on one form

For the first time, EU regulations will also include provisions on passenger protection during connecting journeys when several means of transport are used. Today, the regulations protect people traveling by one means of transport to a greater or lesser extent, e.g. in the event of a canceled flight, a passenger may seek compensation from the airline, and the situation is worse in the case of a combined journey when one of the means of transport fails. For example, passengers whose plane arrives late and therefore misses the train have problems with obtaining support.

Now, in such a situation, the traveler will have the right to a refund of travel costs or a change of ticket. The EC also wants to create an information platform where passengers traveling by combined transport will receive all current information, including: about possible travel delays, as well as their rights, including compensation, meals, drinks and accommodation in the event of a long-hour delay. People with disabilities can also expect special support – those who will have to change trains during the journey will be able to count on the help of the carrier or terminal operator in reaching a new means of transport. If airlines require a person with a disability to be accompanied by a guardian, e.g. for safety reasons, they will have to provide him with a free ticket and a seat next to the person under his care.

Such regulations already apply on railways, ships and bus crossings. The Commission also announced the introduction of a unified form for compensation applications from carriers across the EU. It must be understandable, available in all EU languages ​​and for people with disabilities. It is true that carriers will still be able to use their own documents, but complaints submitted via EU ones will not be able to be rejected.

Less rose-colored glasses

EU consumer organizations assess the new regulations less positively than the European Commission. – This is a good step, but there is still a long way to go to fully protect passengers, Steven Berger from BEUC tells DW. According to him, the regulations lacked, among others: a consumer protection scheme in the event of insolvency of a travel agency and provisions on the absolute right of passengers to cancel tickets in a crisis situation. In fact, the EC only announces that such circumstances of trip cancellation will be taken into account, but there is no automatic right to compensation. “This is bad news because consumers can lose a lot of money if something goes wrong,” explains Berger. According to the organization, the provisions on combined transport and the consequences for carriers for violating passenger regulations are too general to guarantee peace of mind for passengers. Real changes – BEUC believes – certainly concern the provisions on obtaining compensation from intermediaries and guidelines on fees for holiday packages sold by travel agencies.

For the regulations to enter into force, they must be formally accepted by the European Parliament and the Council. This – as Commissioner Reynders says – may happen before next summer. Commissioner Valean believes that the European elections may have an impact on speeding up work. – Passengers are also voters, there will be pressure to improve their fate – he explains.