Travel Industry: New Passenger Rights Rules to Hit Travel Agents

The European Travel Agents' and Tour Operators' Associations (ECTAA) is raising concerns about new European Union regulations designed to strengthen passenger rights, particularly concerning refunds for canceled flights. While ECTAA supports enhanced passenger protection, it argues that certain provisions could unfairly harm travel agents and tour operators.

The core of the issue lies in the proposed rules that would grant passengers the right to a full refund for canceled flights, including fees paid to intermediaries. ECTAA emphasizes that these regulations fail to recognize the distinct role and services provided by agents and tour operators, which are separate from the actual transport service. These intermediaries offer crucial services like comparing offers from multiple carriers, facilitating complex travel plans, providing additional services, and acting as the first point of contact during travel disruptions.

For corporate clients, agents also handle reporting, travel policy management, and traveler support. ECTAA points out that customers consciously choose these indirect channels for the added services and support they provide. The organization contends that the new rules disregard this customer choice, potentially forcing intermediaries to refund their fees for services already performed and to manage the refund process without compensation.

ECTAA also expressed disappointment with the proposed exceptions for micro-enterprises, arguing they do not resolve the problems for the thousands of companies employing more than ten people who will also be subject to the new rules. The organization had previously suggested a more balanced approach, requiring clear communication about refund policies at the point of sale while allowing agents to retain payment for their services. ECTAA's president, Heli Mäki-Fränti, stated that the expectation for intermediaries to refund payment for services rendered in situations beyond their control is unfair.

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It is disappointing that European lawmakers do not recognize the value that independent travel agents bring. Expecting them to refund payment for services already rendered in situations beyond their control is unfair.