Collective Commentary about the New Package Travel Directive

1178 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE that possibility and establishes that the traveller is entitled to a price reduction. In that case, the contract shall indicate how price revisions are to be calculated, assuming the Spanish standard whereby price increases will only be possible as a direct result of changes in the elements referred to in Article 10.1 of Directive (EU) 2015/2302. Therefore, it may only be increased if the traveller has been informed beforehand, together with the possibility of an increase, of the right to a price reduction because of the same causes. If the price increase exceeds eight per cent, the traveller may terminate the contract within a reasonable period specified by the organiser without paying a penalty. Finally, the LVC establishes that the regime applicable to the alteration of other clauses of the combined travel contract, other than the price, features the same terms as Article 11 of Directive (EU) 2015/2302. 4. TERMINATION OF THE PACKAGE TRAVEL CONTRACT With regard to the termination of the package travel contract, the LVC regulates the termination, cancellation and right of withdrawal before the start of the trip, pointing out that at any time before the start of the package the traveller may terminate the contract, but the freedom of the employer to stipulate the standard penalty is introduced as a novelty, following certain criteria. Thus, “ the organiser or, where appropriate, the retailer may require him to pay a penalty that is appropriate and justifiable. The contract may specify a reasonable rate penalty based on the prior termination of the contract with respect to the start of the package and on the cost savings and revenues expected from the alternative use of the services of travel. In the absence of a standard penalty, the amount of the penalty for termination of the contract shall be equal to the price of the package minus the cost savings and the revenue from the alternative use of travel services. The organiser or, where appropriate, the retailer shall provide the traveller who requests a justification of the amount of the penalty ”. However, if there are unavoidable and extraordinary circumstances at the place of destination or in the immediate vicinity which significantly affect the performance of the combined voyage or the transport of passengers to the place of destination, the traveller shall have the right to terminate the contract before the commencement of the contract without paying any penalty. In this case, the traveller shall be entitled to full reimbursement of any payment made, but not to additional compensation.