Landmark CJEU ruling on package travel and compensation

The modern European tourism market has evolved into a dynamic but often unstable environment, where consumers rely on travel organisers for packages combining flights, accommodation, and other services. At the same time, the rise of online bookings has increased uncertainty about who is liable when a trip fails to meet expectations.

Against this backdrop, Directive (EU) 2015/2302 transposed into Cypriot law by Law 186(I)/2017 marked a significant milestone, introducing a unified protection framework for package and linked travel arrangements. Yet, its practical application has raised questions about the scope of travellers’ rights and the obligations of organisers.

The CJEU ruling of 23 October 2025 (Case C-469/24)

The Court of Justice of the European Union (CJEU) recently clarified key issues through its ruling in Case C-469/24. The case concerned two Polish travellers who suffered serious inconvenience during an organised trip to Albania.

The five-star hotel in which they stayed was undergoing extensive renovation works, resulting in noise, dust, and the unavailability of facilities such as swimming pools and recreation areas.

The claimants sought a price reduction and compensation for both moral and material damages under the Directive. The Polish national court referred preliminary questions to the CJEU, asking whether the organiser’s liability depends on fault and whether compensation covers non-material damage.

The right to a price reduction

Under Article 14(1) of the Directive, the traveller is entitled to an appropriate price reduction for any period during which the services are not in conformity with the contract.

The CJEU said the organiser’s liability is objective, that is, it does not require proof of intent or negligence. It is sufficient to establish that the services provided did not correspond to the contractual description or the traveller’s reasonable expectations.

The court noted that the reduction must be proportionate to the seriousness and duration of the lack of conformity. Even if part of the trip was performed as agreed, the reduction should reflect the extent to which the overall experience was affected. This case law reinforces the concept of “qualitative rights”, where protection extends beyond purely financial losses to the quality of the services provided.

Compensation for non-material damage and distress

The CJEU further confirmed that Article 14(3) of the Directive guarantees the traveller’s right to full compensation for all damages, including non-material harm such as disappointment or loss of enjoyment of the holiday.

Such compensation cannot be limited by national laws requiring proof of fault or shifting liability to third-party service providers.

The court made clear that organisers cannot exonerate themselves by claiming that responsibility lies with subcontractors or partners. The overall package is the responsibility of the organiser, who must ensure compliance across all constituent services.

Unavoidable and extraordinary circumstances

In its reasoning, the CJEU clarified that the exemption from liability based on “unavoidable and extraordinary circumstances” must be interpreted strictly.

Such circumstances exist only when events are beyond the organiser’s control and independent of their will, such as natural disasters or political crises. Ordinary operational problems, such as delays, overbooking or contractor issues do not suffice to exempt liability.

Refund of the full price

The Court also examined whether travellers may claim a full refund when the lack of conformity affects the entirety of the travel services and answered affirmatively.

Where the experience proves substantially different from what was contractually agreed, travellers are entitled to reimbursement of the total amount paid.

A milestone for consumer protection

This judgment reinforces the high level of consumer protection mandated by Article 1 of the Directive. It makes clear that travel organisers bear full responsibility for the quality and performance of all services provided.

The decision marks a turning point in European consumer law; it strengthens the objective liability of travel organisers, affirms the right to compensation for non-material damage and restricts the misuse of the “extraordinary circumstances” exception.

The CJEU thus ensures that travellers across Europe enjoy a uniform and robust level of protection, while encouraging a more responsible and transparent tourism market that enhances both the quality and credibility of European travel services.