The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

8 September 2008 on common rules for the operation of air services in the Community and specifically of its 2 nd Chapter (Chapter II) on Operating Licence. III. Package Travel During these troubling times, the COVID-19 pandemic has caused a number of issues which have a significant impact on the travel industry. The massive cancellations of trips, as result of negative travel advisories and closing of borders, have caused an exorbitant outflow of liquidity, which could lead to the financial ruin of thousands of tour operators and travel agencies in the near future. The European Travel Agents’ and Tour Operators’ Association, in its Press Release on the 17 March 2020, focused on the need that the European Commission shall grant exceptional flexibility in the application of the Directive (EU) 2015/2302 15 (hereinafter referred to as “PTD”), to the interest of travel companies, suppliers, governments and consumers 16 . III.1. EU Legal Framework Regarding Travellers’ Rights in Case of Termination of the Package Travel Contract Under the Package Travel Directive rules, the organiser of a package has the right to terminate the package travel contract without penalty if he is prevented from performing it because of “unavoidable and extraordinary circumstances”. The organiser shall notify the traveller of the termination of the contract without undue delay before the start of the package. In this case, the organiser shall provide the traveller with a full refund of any payments made for the package, but shall not be liable for additional compensation (Article 12(3)(b) PTD). Contrary to Air Passenger Rights Regulation in which there is no mention to the case of serious diseases or epidemics, the PTD includes in its indicative list of unavoidable and extraordinary 15 Directive (EU) 2015/2302 of the European Parliament and of the Council of 25 November 2015 on package travel and linked travel arrangements, amending Regulation (EC) No. 2006/2004 and Directive 2011/83/EU of the European Parliament and of the Council and repealing Council Directive 90/314/EEC (OJ L 326, 11.12.2015, pp. 1–33). 16 European Travel Agents’ and Tour Operators’ Association, Press Release - The European travel agents and tour operators call for pragmatism and flexible application of the refund rules , 17 th March 2020. Available at: https://www.ectaa.org/Uploads/press-releases/Press-release-ECTAA-calls-for-pragmatism-and-flexible- application-of-the-refund-rules.pdf (accessed on 26/04/2020).