Package holidays: your rights

What is a package travel and who is liable?

Under the Tourism Act (turismiseadus, TurS), a package travel is a combination of at least two different types of travel services for the same trip, if it was put together by one organiser, including at the traveller's request or choice, before one contract for all the services is concluded (TurS § 7 lg 1) [4]. It is also a package if the traveller selects different types of travel services for the same trip from a single point of sale before agreeing to pay, even if separate contracts are concluded with the individual service providers (TurS § 7 lg 2 p 1) [4]. The organiser is liable for performance of the contract even when the service is provided by someone else (VÕS § 877 lg 1) [1]. A seller of travel services may not rely on a term saying it is only an intermediary if, based on its advertising, catalogues or other circumstances, the traveller could reasonably regard it as the organiser (VÕS § 866 lg 4) [5].

These rules do not apply to package travels lasting less than 24 hours, unless they include overnight accommodation (VÕS § 866¹ lg 1) [6], or to business trips arranged on the basis of a general agreement between a trader and a person acting in the course of their business or profession (VÕS § 866¹ lg 3) [6]. An agreement that derogates from the package travel rules to the traveller's detriment is void (VÕS § 882) [7].

Can the organiser raise the price or change the trip?

After the contract is concluded, the price may be increased only if: the contract expressly provides for this and for how the new price is calculated; the increase results from a change in transport costs due to the price of fuel or energy, in taxes or fees set by third parties, or in exchange rates; the traveller is told of the increase, with reasons and calculations, no later than 20 days before the trip starts; and the contract also gives the traveller the right to a price reduction if those costs fall (VÕS § 871 lg 1) [8]. If the increase exceeds eight per cent of the total price of the package, the traveller has the same rights as in case of a significant change to the trip (VÕS § 871 lg 2) [8].

The organiser may unilaterally change other terms only if the contract gives it that right, the change is insignificant and the traveller is informed on a durable medium (VÕS § 872 lg 1) [9]. If the organiser has to change significantly, for example, the itinerary, transport or accommodation, the traveller may, within the reasonable period set by the organiser, either accept the change or withdraw from the contract; if the traveller does not withdraw within that period, they are deemed to accept the change (VÕS § 872 lg 2) [9]. If the traveller withdraws and does not accept a substitute package, all payments are refunded without delay and no later than within 14 days (VÕS § 872 lg 6) [9].

The traveller does not have to bear additional fees, charges and other costs they were not informed of before the contract was concluded (VÕS § 867 lg 4) [10].

Can I cancel the trip before it starts?

Yes, at any time before the trip starts (VÕS § 874 lg 1) [2]. The organiser then loses the right to the price but may claim reasonable compensation (VÕS § 874 lg 2) [2]: the price minus the costs it saved and what it can obtain by using the travel service otherwise; the amount may be set in the contract in advance, taking into account also how much time was left before the trip when the traveller withdrew; at the traveller's request, the organiser must justify the amount (VÕS § 874 lg 3) [2].

No compensation may be claimed if the traveller withdraws because of unavoidable and extraordinary circumstances at the destination or in its immediate vicinity that significantly affect the services or the carriage of travellers there; the traveller then gets back all payments made, but no additional compensation (VÕS § 874 lg 4) [2]. These are circumstances beyond the control of the party relying on them, whose consequences could not have been avoided even if all reasonable measures had been taken (VÕS § 874 lg 8) [2].

What to do if something goes wrong during the trip?

Report the breach without delay to the organiser or the intermediary (VÕS § 875 lg 1) [3]. The organiser must take reasonable measures at its own expense to remedy the breach; if this is impossible or entails disproportionate costs, the traveller may claim damages or reduce the price (VÕS § 875 lg 1¹) [3]. Give it a reasonable time to do so; if the organiser does nothing within that time, the traveller may take the measures themselves and claim the necessary expenses (VÕS § 875 lg 2) [3].

If a significant part of the services cannot be provided as agreed, the organiser offers other suitable services at no extra cost; if they are of lower quality, the traveller may reduce the price (VÕS § 875 lg 3) [3]. If the lack of conformity significantly affects the trip and is not remedied within a reasonable time set by the traveller, the traveller may terminate the contract (VÕS § 876 lg 1) [11]; the organiser must then provide equivalent return transport without delay and at no extra cost (VÕS § 876 lg 3) [11].

If, due to unavoidable and extraordinary circumstances, the return cannot be arranged as agreed, the organiser bears the cost of necessary accommodation, not exceeding three nights per traveller (VÕS § 875 lg 4) [3]. The three-night limit does not apply, among others, to persons with reduced mobility and those accompanying them, pregnant women, unaccompanied minors and persons in need of specific medical assistance, provided the organiser was notified of their particular needs at least 48 hours before the trip starts (VÕS § 875 lg 5) [3]. It must give appropriate assistance without delay to a traveller in difficulty (VÕS § 878¹ lg 1) [12].

What compensation can I claim?

The traveller may claim damages and reduce the price, including reasonable compensation for holiday time spent in vain (VÕS § 877 lg 2) [1]. There is no right to damages if the organiser proves that the lack of conformity is attributable to the traveller, to a third party unconnected with the travel services and is unforeseeable or unavoidable, or to unavoidable and extraordinary circumstances (VÕS § 877 lg 2²) [1].

A contract cannot limit liability for damage caused intentionally or through gross negligence, or for causing the traveller's death, bodily injury or damage to health (VÕS § 878 lg 1 and 2) [13]; for other damage, liability may be limited to three times the price of the trip (VÕS § 878 lg 3) [13].

What the law says

• „Reisikorraldaja vastutab lepingu täitmise eest reisija ees, sõltumata sellest, kas lepingulised kohustused peab täitma tema ise või keegi teine.“ [1] (translation: the organiser is liable to the traveller for performance of the contract, regardless of whether the contractual obligations are to be performed by the organiser or by someone else; VÕS § 877 lg 1) – liability cannot be passed on to the hotel or the carrier.
• „Enne reisi algust võib reisija lepingust igal ajal taganeda.“ [2] (translation: before the trip starts, the traveller may withdraw from the contract at any time; VÕS § 874 lg 1) – you can always cancel, but usually reasonable compensation is due.
• „Reisija peab lepingu rikkumisest teatama reisikorraldajale või vahendajale viivitamata.“ [3] (translation: the traveller must report a breach of contract to the organiser or the intermediary without delay; VÕS § 875 lg 1) – report the problem at once, not after you get home.
• „Käesolevas peatükis sätestatust reisija kahjuks kõrvalekalduv kokkulepe on tühine.“ [7] (translation: an agreement derogating from this chapter to the traveller's detriment is void; VÕS § 882) – travel terms cannot cut back these rights.

What to do

1. Keep the copy of the contract or its confirmation, which the organiser or intermediary must give you on a durable medium (VÕS § 869 lg 1) [14].
2. If a problem arises during the trip, report it without delay and give a reasonable time to fix it (VÕS § 875 lg 1 and 2) [3]. Record the problem (photos, correspondence).
3. After the trip, make a written complaint under the Consumer Protection Act (tarbijakaitseseadus, TKS) stating your name and contact details, the dates, the defect and your claim (TKS § 24 lg 3) [15]. The trader must reply within 15 days unless a law or a European Union regulation sets another time limit (TKS § 24 lg 5) [15].
4. If the trader refuses or you do not accept its solution, turn to the Consumer Disputes Committee (TKS § 46 lg 1) [16], where proceedings are free of charge for the parties (TKS § 45 lg 4) [17], or to a county court (TKS § 24 lg 9) [15].

Frequently asked questions

Can I transfer my trip to someone else?

Yes, until the trip starts, if the new traveller meets the conditions for taking part and you notify the transfer on a durable medium within a reasonable time; notice at least seven days before the trip starts is reasonable in any case (VÕS § 873 lg 1) [18]. You and the new traveller are jointly and severally liable for the unpaid balance of the price and any additional costs arising from the transfer (VÕS § 873 lg 2) [18]. The transfer costs may not be unreasonable or exceed the costs the organiser actually incurred (VÕS § 873 lg 3) [18].

What if the organiser cancels the trip?

If fewer people have registered than the minimum stated in the contract, the organiser may withdraw by giving notice no later than 20 days before a trip of more than six days, seven days before a trip of two to six days and 48 hours before a trip of less than two days (VÕS § 874 lg 5) [2]. It may also withdraw if it cannot perform the contract because of unavoidable and extraordinary circumstances and notifies the traveller without delay before the trip starts (VÕS § 874 lg 6) [2]. In both cases it refunds all payments but pays no additional compensation. Payments must be refunded without delay and no later than 14 days after the contract is terminated (VÕS § 874 lg 7) [2].

What if the organiser goes bankrupt?

The organiser must have security for the case where it cannot perform the contract because of insolvency (TurS § 15 lg 1) [19]; it covers, among other things, repatriation (if the package includes transport), accommodation until return and refunds of payments if the trip does not take place (TurS § 15 lg 3) [19]. The security does not form part of the bankruptcy estate (TurS § 15 lg 6) [19].

Are the airline's compensation and the organiser's compensation added up?

No. Compensation under the Act and compensation under the passenger rights regulations are deducted from each other to avoid overcompensation (VÕS § 877 lg 3²) [1].

Can I get compensation for a ruined holiday?

Yes, as compensation for non-pecuniary damage you may claim reasonable compensation for holiday time spent in vain; the organiser pays damages without delay (VÕS § 877 lg 2) [1].