HOTREC: Updated Package Travel Rules Fail to Protect Hotel Viability

Tourism professionals in the EU are calling on the European Parliament and Council to reexamine updated amendments to the Package Travel Directive (PTD) adopted last year, claiming that the current proposal lacks fairness between consumer protection and hotel viability.

HOTREC, the umbrella association of Hotels, Restaurants, Bars, Cafés, said it welcomed the Commission’s effort to simplify the PTD but in its current form it could undermine competitiveness and impact small businesses.

“We urge EU co-legislators to address liability and enforcement concerns as well as minimize the administrative burden on SMEs, especially insolvency protection requirements,” the association said.

HOTREC went on to add that it was crucial to ensure economic sustainability for hotels while safeguarding consumer rights.

Main concerns highlighted by HOTREC include the proposed three-hour package rule, which the association claims fails to bring clarity; down payment regulations should remain under B2B contracts to avoid cash flow constraints; requiring hoteliers to refund cancelled services within seven days which it says is “impractical”; and lastly, vouchers can be a viable alternative to refunds, but it is “unreasonable to demand automatic reimbursement after the validity period expires”.

Last month, travel and tourism services providers also called on the EU to revisit the proposed amendments, arguing that the new changes may “destabilize the delicate balance of the European tourism ecosystem”.

“It is critical to ensure that any new regulations not only enhance consumer protection but also support the growth and sustainability of the tourism sector, which plays a crucial role in the economic prosperity of Europe,” they said in a letter.