In light of the Covid-19 pandemic sweeping the globe, the ULC has published advice addressing travellers’ concerns over booked holidays or postponed travel. Consumer rights depend on whether the travel was booked as part of a package holiday, or individual services with different operators.
New regulations applicable in Luxembourg since July 2018 state that a consumer may cancel a package trip at any point up to departure, subject to payment of an indemnity under general terms and conditions. The cancellation fee must be reasonable.
However, in the event of a force majeure such as the Covid-19 virus at the destination, the traveller and travel agency may cancel the trip without penalty if “exceptional and unavoidable circumstances, occurring at or near the travel destination, have significant consequences on the execution of the package or on the transport of passengers to the destination” (Article L.225-10 (2) of the Consumer Code). In a case such as this, consumers have the right to obtain a full refund for any payments made towards the package holiday within 14 days.
According to the European Commission, “significant risks to human health, such as the appearance of a serious illness like COVID-19 at the place of travel or in its immediate surroundings, are generally considered to be unavoidable and extraordinary circumstances” .
However, this interpretation of the Luxembourg Consumer Code is not legally binding, so in a dispute with the travel agency, it would fall to a tribunal to decide on a case by case basis. Official statements from responsible authorities, such as the classification of a country in a risk zone by the Ministry of Health or the official closure of the borders of a country, would help to justify the consumer’s decision in such a situation.
In cases where a flight is cancelled by the airline, the regulations on air passenger rights (APR) stipulate that the traveller is entitled to reimbursement of the total price or re-routing as far as possible. No additional financial compensation would be due, if the cancellation is linked to extraordinary circumstances.
On the other hand, if the consumer cancels the flight on their own initiative, the APR regulation does not provide for any right to reimbursement, even if the decision was forced by an extraordinary circumstance such as the spread of the Covid-19 virus. However, the passenger may request reimbursement of the fees and charges which are part of the ticket price. Currently, some airlines are offering their passengers solutions to the current situation (for example a free postponement of the flight).
In terms of cancelling hotel reservations, the terms of cancellation and any penalties depend exclusively on the terms and conditions for each establishment. Travel insurance is generally linked to personal issues, rather than external circumstances. Consequently, such insurance does not cover the penalties invoked by a cancellation on the part of the consumer; instead it mainly applies in the event of illness.
The ULC’s legal department is available for any additional questions, Monday to Friday between 8am and 12pm. If you encounter a problem with a travel agency or organiser established abroad, please contact the CEC (European Consumer Centre).
