Consumer rights to cancel travel

If you have travel cancellation insurance, first check what situations and risks are covered by the insurance, what proof is required by the insurance company when applying for insurance and what are the deadlines for claiming insurance. Namely, some insurance companies do not cover (anymore) travel cancellations due to COVID-19 for insurance contracts concluded after a certain date, since it is no longer an uncertain event now that the virus can be expected to spread.

In the case of package travel (a combination of at least two different travel services for the same trip), the consumer can usually withdraw from the contract at any time; in this case, he or she is entitled to a full refund and exempted from the obligation to pay a cancelation fee (but does not have the right to claim damages) when unavoidable and extraordinary circumstances occur, which significantly affect the package at the trip location or in its immediate vicinity before the start of the trip. It should be emphasised that the abovementioned extraordinary and unavoidable circumstances must also be specified on a refund application form, with the exception that until such time as the flight is cancelled, the said circumstances cannot be invoked when cancelling. Each case should be assessed case-by-case, especially when several services are included, some of which are cancelled and others which are not. Extraordinary and unavoidable circumstances can be proven by means of public notices issued by the competent authorities regarding the situation at the place of travel. 

If the above condition is not fulfilled, especially when the consumer does not want to travel because of fear of illness, cancellation is still possible. An individual can cancel the trip at any time, but in such a case he or she must cover the cost of the cancellation fee, which usually increases as the departure date approaches. The cancelation fee must be adequate and justified, and if requested by the consumer the amount of the cancellation fee must be explained by the tour operator. 

In case of exercising the right of withdrawal, the tour operator must, within 14 days of cancellation of the contract, refund all payments to the consumer. 

Regarding reservations with independent accommodation providers, consumer rights in the event of termination of the contract are not regulated. In the event of cancellation by the provider, the provider must refund the consumer. 

With regard to the possibility of termination by the consumer, it is necessary to check the content of each contract and the provider’s general terms and conditions, which set down the instances in which termination is possible. This also applies to car rentals, where the conditions for cancellation are usually even stricter.

To ensure maximum consumer protection, the European Commission has issued guidelines explaining the EU’s passenger rights regulations regarding the evolution of the COVID-19 situation, which help different providers with questions about how to properly interpret the provisions. 

A feature common to most types of transportation is that the consumer can choose between a refund and re-routing. The latter choice could be problematic, since it is impossible to predict how long the pandemic will last. As a result, changing the route may not be possible in the short term or cannot be foreseen, as the situation changes from day to day. 

When individuals do not want or are unable to travel, some carriers have opted to issue time-limited credits. This form of reimbursement is in line with legislation, as it is not only correct in cases where the carrier cancels and offers only credit, but also if the consumer chooses credit on his own. 

– Rights of air passengers (we have already looked at the rights of air passengers in a previous issue of Legal Buzz). 

If the airline cancels the flight, the passenger has the choice of:

• a refund (of money) – for separate departure and return flights, only the cancelled flight will be refunded; or 
• changing the route at the first opportunity; or 
• changing the route at a later date when it suits the passenger. 

Due to the COVID-19 outbreak, consumers are not entitled to damages in the event of cancellation (if the initial conditions are fulfilled), especially if public authorities have introduced flight bans or prohibited the movement of persons, or only allow flights to certain countries, as airline companies cannot influence or foresee these circumstances.

– Rights of rail passengers  

If the delay in arriving at the destination is more than 60 minutes, the passenger shall be entitled to: 

• a refund of the ticket price – the cost of the ticket only for the part or parts of the route that have not been completed; or 
• continue or change routes – under comparable transport conditions, at the earliest opportunity or at a time that suits the consumer. Under this option, consumers are also entitled to compensation: 
• Delay from 60 to 119 minutes – 25% of the ticket price; 
• Delay of 120 minutes and more – 50% of the ticket price. 

In the event of a delay of more than 60 minutes, passengers are also entitled to meals, refreshments, accommodation (when one or more overnight stays are required), transportation to the train station, alternate starting point or destination where and when physically possible, if the train got stuck on the track.

In the case of scheduled bus services with a scheduled distance of 250 km or more and where the carrier reasonably expects the scheduled service to be cancelled or to leave the station more than 120 minutes late, the passenger shall be entitled to: 

• route changes; or 
• a ticket refund. 

If the carrier does not offer either of those two options, the passenger is entitled to a refund of 50% of the ticket price. 

When traveling on a longer trip (more than three hours), passengers are entitled to snacks, meals or refreshments (if available on the bus, at the station or can be reasonably supplied) in the event of cancellation or more than 90 minutes delay in departure, accommodation (for a maximum of two nights), transportation to the place of accommodation and back to the station.