What do the new EU refund rules mean for travel agents?

Europe has rewritten its air passenger rules, and two votes this autumn set the clock. Regulation (EU) 2026/2202 entered into force on October 22. A second law, backed by the European Parliament on October 20, puts travel agents inside the refund chain with a 14-day deadline. Both apply from October 23, 2027. If your travelers fly to and from Europe, here is what changes and what to set up over the next year.

What did the EU change this month?

Two laws are moving together. The first, Regulation (EU) 2026/2202, updates EU261, Europe's rule for disrupted flights. It was formally adopted on September 16 and published in the Official Journal on October 2. It entered into force on October 22, according to the UK law firm Burges Salmon.

The second covers passenger rights across planes, trains, buses and ferries, with new duties for intermediaries such as travel agents and booking sites. Parliament approved it on October 20 by 652 votes to 2, with 8 abstentions. The Council of the EU still has to give its formal approval, and then the text is published.

When do the new rules apply?

Both laws apply from October 23, 2027. Until then the current EU261 rules stay in force, so this winter's cancellations follow today's process.

That gives agencies close to a year. It's enough time to change how refunds move through your accounting, as long as the work starts early in 2027.

How will refunds work when an agency sold the ticket?

On a 14-day clock, split in two. Under the rules Parliament backed on October 20:

1. The airline pays the agency within 7 days of the cancellation.
2. The agency pays the traveler within a further 7 days.
3. The refund is complete. It includes any fee the agency charged for the booking.
4. The terms come first. At booking, the agency explains how refunds will work.

Euronews reports that the airline must step in and pay the traveler if the intermediary misses its deadline. The EU261 update adds a second clock: a traveler who chooses a refund is paid automatically within seven days, intermediary fees included, with the claim made for them.

How the two clocks fit together on agency bookings is still being settled. Burges Salmon says the detail for intermediary bookings remains to be seen, and the final text will answer it. We'd plan for the stricter reading: seven days on your side, from the day the airline's money lands.

What else changes for travelers?

The EU261 update changes what travelers can expect on the day of a disruption, and agents will hear about it first:

• Rerouting. An airline has three hours after a cancellation to offer a comparable reroute. After that, travelers can book their own and claim back up to four times the original fare.
• Missed connections. The airline whose flight caused the miss is responsible for rerouting and care through to the final destination.
• Return flights. A traveler who missed the outbound flight keeps the right to board the return.
• Tarmac delays. At EU airports, passengers can generally leave the aircraft after two hours, where it's safe.
• Hand baggage. A free personal item is allowed, and fares that include hand baggage show by default.
• Claims. Travelers generally claim compensation within nine months of departure, and airlines decide within 30 days.

The second law adds common claim forms, published by the European Commission in every EU language and for every mode of transport.

What should agencies do before October 2027?

1. Size your Europe business. Pull a year of tickets and mark the flights these rules cover, so you know how many refunds a bad week could bring.
2. Ask about the money flow. Your consolidator or host agency will have a view on how an airline refund reaches you inside seven days. Get it in writing.
3. Track every refund to the day. Record the cancellation date, the day the airline paid and the day the traveler was paid. A shared tracker makes the 14 days visible to the whole team.
4. Draft your booking terms. The rules ask agencies to explain refund arrangements at booking. Write the wording now and send it with each Europe confirmation from 2027.
5. Brief your advisors. The three-hour reroute rule and the free personal item will come up on calls. A one-page summary keeps answers consistent.

Who should pay closest attention?

Agencies and TMCs with steady Europe volume, and accounting teams that handle refunds by hand. A cancellation wave, such as a strike week, could put dozens of refunds on the same 14-day clock. Leaders should ask one question now: who owns each refund from cancellation to payout, and how will we know it's on time?

Common questions