7 September 2021: The Commission will, by 2022, carry out a deeper analysis into whether the current EU rules always achieve robust and comprehensive consumer protection.

As highlighted in the Commission’s report of 26.2.2021, these last months have revealed certain challenges with the application of the Directive during normal times and during a crisis. In the context of a large crisis as the Thomas Cook bankruptcy and the COVID-19 pandemic, challenges appeared in relation to the solidity and scope of insolvency protection under the Directive and regarding refunds, in particular in the context of a large crisis. During the COVID-19 pandemic, many travellers reportedly did not receive reimbursements within 14 days as required under Article 12(4) of the PTD or did not receive them at all.

The analysis will cover the rules governing insolvency protection and will take into account the relevant actions announced in the Sustainable and Smart Mobility Strategy to protect passengers’ rights.

The Directive (EU) 2015/2302 on package travel and linked travel arrangements (‘the Package Travel Directive’ or ‘the Directive’) aims to contribute to the proper functioning of the internal market and to the achievement of a high level of consumer protection in the area of package travel. 

The Directive sets out pre-contractual information requirements and contains rules on the liability for the improper performance of packages, cancellations, as well as on the protection of travellers against the organiser’s insolvency. The COVID-19 pandemic led to mass cancellations of travel bookings, including packages. Due to liquidity problems of organisers, some travellers did not receive refunds or received them only with considerable delay. Several Member States adopted legislation significantly extending the periods for reimbursements or making vouchers mandatory for travellers. In May 2020, the Commission recommended principles to make voluntary vouchers more attractive for travellers, including by protecting them against the insolvency of the organiser. 

In its New Consumer Agenda of 13 November 2020, the Commission announced that by 2022 it would carry out a ‘deeper analysis into whether the current regulatory framework for package travel, including as regards insolvency protection, is still fully up to the task of ensuring robust and comprehensive consumer protection at all times, taking into account also developments in the field of passenger rights.’ The Commission’s report of 26.2.2021 (COM(2021) 90 final) provided an overview of the application of the Directive since July 2018, including its transposition by the Member States, and highlighted a number of strengths and weaknesses.

The evaluation will assess whether the Package Travel Directive fulfils its main objectives, and will take into account the following criteria: relevance (to what extent the provisions of the Directive correspond to current needs), effectiveness (whether the original objectives have been achieved), efficiency (costs, benefits and simplification /burden reduction potential), coherence (extent to which the Directive is coherent in itself and how well it works together with other related legislation, e.g. the rules on passenger rights), and the added value of EU action compared to action taken separately by the Member States. It will cover the period since the Directive started applying in July 2018 until spring 2022, in all Member States and EEA countries. 

Next steps:
The findings of the evaluation will feed into an impact assessment. The impact assessment is planned to be carried out after the evaluation and is likely to start in spring 2022. This process will make it possible, if necessary, to propose amendments to the Directive at the end of this exercise to tackle potential shortcomings, including in the areas where the European Court of Auditors recommended the examination of possible legislative changes by the end of 2022.