As from 1 July, 2018, travel contract rules have changed in favour of tourists thanks to a new EU Directive. Upon the implementation of the Directive, new rules apply concerning the information requirements and liability of tour operators.
The Directive differentiates between travel package and non-travel package arrangements. Concerning the first one rules are stricter on tour operators. Travel packages are usually tours which provide accommodation for several days, transport to the destination or other activities. First, let’s see what are the new rules on non-travel packages since 1 July, 2018. The contract must be drafted in a plain and simple language, and if the contract was concluded in person, the traveller may ask for a printed copy which shall be legible.
Rules on down payment have also became stricter. Only 40 % of the total price may be demanded as down payment when concluding the contract. A higher amount may only be demanded if the tour operator is bounded by a stricter agreement with the collaborator (e.g. hotel, airline). The total fee cannot be demanded earlier than 30 days prior to the tour unless the contract between the tour operator and the collaborator states otherwise.
The new regulation restricts unilateral increase of prices by the tour operator. The total fee may only be raised by the tour operator if it has been stated in the contract previously. Moreover, the cause of the raise may only be the change in transportation fees, taxes or other mandatory fees levied by third parties or the volatility of the foreign exchange rate. Furthermore, the raise is only valid if the tour operator notifies the traveller at least 20 days before the tour stating the reasons of the raise and if such raise is proportionate to the increase of the underlying costs.
The option for the traveller to transfer the travel contract is also a favourable change. The tour operator must be notified of the transfer at least 5 days prior to the tour. The contract may only be transferred to a person who meets the requirements of the contract.
Provisions on the cancellation of the contract have also changed in favour of the travellers. They may terminate the contract at any time but if the contract contains a cancellation fee it must be paid. However, the amount of the cancellation fee cannot exceed the amount of the tour’s total cost. If the tour operator unilaterally changes essential elements of the contract the traveller may terminate the contact without paying termination fee. The tour operator may also terminate the contract; in this case they have to provide equivalent service on the same or higher level, otherwise the traveller may request the difference between the original and the equivalent service. If the tour operator cannot offer equivalent service or the traveller does not accept the offered service, they must reimburse the traveller for the fee already paid.
The tour operators are liable for the damages caused by the breach of contract. They can only be excused if they prove that the breach of contract is attributable to the traveller; or it is due to third party behaviour who is not aware of the travel contract’s performance and the tour operator was not able to foresee even with reasonable diligence or it was not avoidable; or it happened because of unavoidable and exceptional circumstances.
Tour operators have to meet much stricter regulations when it comes to travel packages. Tour operators must provide a written information sheet on consumers’ rights to travellers. The tour operator must provide a written copy of the contract or a confirmation when or immediately after concluding the contract.
Regulations on increasing fees are also stricter: the amount of increase is maximised in 8% of the total fee. If the increase is higher or it changes an essential element of the contract before the start of the tour, the traveller may cancel the contract without paying termination fee or may accept the alternative offer. The tour operator must inform the traveller of the raise and its causes clearly and in a comprehensible way.
The tour operator may only amend the contract if such right is stated in the contract. If the traveller cancels the contract, the amount of the cancellation fee must be reasonable. So the costs recovering from another source to the tour operator cannot be charged on the traveller.
If the tour operator cannot provide the services stated in the contract, must offer equivalent service which may be denied by the traveller but only if the equivalent service differs materially from the one stated in the contract, or proper discount is not offered. If the problem could not be solved, the traveller may even cancel the contract without paying cancellation fee and demanding compensation and discount.