20 Mar 2020
The Package Travel and Linked Travel Arrangements Regulations describe the legal implications following the termination of a package travel contract by a traveler. Under normal circumstances, a traveler terminating a package travel contract prior to going on holiday is required to pay an appropriate and justifiable termination fee to the organizer. Package travel contracts sometimes provide for standardized termination fees. When they do not, a cancellation fee is calculated by deducting the cost savings and income from alternative deployment of the travel services from the price of the package.
However, if a traveler is forced to cancel a travel package because of unavoidable and extraordinary circumstances occurring at the place of destination or its vicinity, and where this significantly affects the performance of the package or the carriage of passengers to the destination, they will be exempt from paying a termination fee. They are also entitled to a full refund of the amount paid for the package.
If a package travel contract is terminated instead by the organiser and the cancellation is also prompted by unavoidable and extraordinary circumstances, a traveler is also entitled to a full refund.
Prior to the enactment of the latest amendments, any refunds payable to the traveler following a cancellation was to be made by not later than 14 days from the termination of the package travel contract. Now, the amendments extend this period to six months, in order to reduce the burden on the finances and cashflow of travel operators, who are among the most heavily hit sectors by the impact of measures intended to address the spread of COVID-19. This extension will apply to all contracts terminated between 1 March 2020 and 31 May 2020, both days inclusive.
The information above does not, and is not intended to, constitute legal advice and should not be relied on as such. For any specific matters, please reach out to your usual WH Partners contact or write to us on email@example.com