Package holiday not as expected due to coronavirus restrictions? You are entitled to a price reduction
Have the hotel swimming pool and beach been closed due to COVID-19 travel restrictions? If booked travel services cannot be provided, travellers are entitled to receive a reduction in the price of their package holiday. Even if the reason these services are unavailable are restrictions to fight an infectious disease, says the Court of Justice of the European Union.
The Court ruling was made in the case of two German tourists. They had booked a package travel holiday through a travel organiser and had booked two weeks in Gran Canaria in March 2020. But when they arrived on the island, lockdown measures were introduced. Holidaymakers were not allowed to leave their hotel and the government ordered a curfew. Tourists were only allowed to leave their hotel room for meals. Beaches and swimming pools were closed and entertainment programmes were cancelled. After two days, the German tourists had to fly back home.
The travellers asked the tour organiser for a price reduction of 70%. But this claim was rejected. The travel organiser felt that it could not be held responsible. A German court referred the question to the Court of Justice.
Judgment
The Court states that it does not matter why the package travel could not be carried out as planned. That the Spanish authorities imposed the measures due to the pandemic and similar measures were taken in other countries, does not change the situation. The risk lies with the travel organiser. If a package holiday is not as advertised, the tour operator has to reduce the price. The only exception lies in situations where the traveller can be held liable.
What is a fair price reduction? To assess this, the Court considers the value of the package travel arrangement itself and the value of the services that could not be provided. For example, a closed swimming pool or beach has a major impact on a trip. It means the tour operator has failed to carry out certain parts of the agreement. Even if this was due to coronavirus restrictions imposed by authorities.
More information?
More information on the ruling case C-396/21 FTI Touristik can be found on the Infocuria website (jurisprudence of the Court of Justice of the European Union).