Package holiday: what is a package holiday?
Your holidays are coming up. But should you book the flight and accommodation as a package or separately? Comparis explains the advantages and disadvantages of a package holiday.
23.08.2023
iStock/FG Trade Latin
1. Package holiday: what is it?
For a package holiday, you book several services with a provider or intermediary. You pay a price for everything together. For example: if you book a 14-day bus trip through the USA including flights and hotels, this is a package holiday. If you book flights and hotel separately for a week in New York, this is not a package holiday.
Package travel benefits include:
Transportation
Accommodation
Other tourist building blocks of a trip, for example a rental car.
A package tour must also meet one of two criteria:
Longer than 24 hours
At least one night’s stay
In the case of a package tour, the organiser may specify a specific scope of benefits. You can also arrange the trip according to your own wishes.
Types of Package Travel
Not only all-inclusive or club holidays are package holidays. You can also book city breaks or adventure holidays as a package holiday.
2. Benefits of a package holiday
The benefits of a package tour are coordinated with each other. This applies, for example, after arrival at the airport: the transfer to the hotel is usually included and adapted to your flight.
Packages often come with early bird discounts and last minute deals. In this way, you usually save more with the offers than if you booked all services individually.
With early bird discounts and last minute deals, organisers try to avoid losses. They have a certain amount of seats that they cannot change in the short term. These include, for example, hotel rooms or seats on the plane.
With early bird discounts, suppliers are more likely to sell some of the existing leftover capacity. With last-minute offers, they try to sell the remaining seats.
Safety when booking a package holiday
If you book a package holiday, you are covered in certain situations even without travel insurance:
In the event of insolvency of the organiser, the organiser must repay you the money and organize the return trip (Art. 18, PRG).
In cases of force majeure such as natural disasters, the organiser or intermediary will take care of you (Art. 15, PRG). This can be, for example, organizing a return trip or moving to another hotel.
The organiser or intermediary cannot simply increase the price of the trip. The possibility of a price adjustment must be stated in the contract. In addition, the provider must justify the change in an increase in the cost of a service or benefit (Art. 7, PRG).
You do not have to accept an increase of more than 10%. In this case, you can withdraw from the contract (Art. 10, PRG). You have three options:
You take an equally expensive or more expensive trip with the same organiser or intermediary. You will not incur any further costs.
You take a cheaper with the same organiser or intermediary. You will be refunded the difference.
You will be refunded all amounts paid as soon as possible.
If you are unable to start the trip, you can transfer it to another person (Art. 17, PRG). You and your replacement person will pay for any additional costs.
Information from the provider
For package tours, you usually have a tour guide on site or a contact person who can be reached by phone. If neither exists, organisers and intermediaries usually have an emergency number.
According to the Federal Act on Package Travel, the provider or intermediary must inform the travellers in good time about regulations for passports and visas. This also includes the duration of the application process. Exception: non-EU/EFTA members must explicitly and immediately request the information.
3. Drawbacks of a package holiday
If you book a package holiday online, the offer can be confusing and overwhelming for you. Many providers offer similar trips, but they differ in individual points. So you have to read the offer carefully.
Some services may take more time on package holidays than if you book them individually. Example: the airport transfer takes travellers from different hotels and must also transport these. This can significantly extend the transfer time.
More options with individual travel
Individual travel may be cheaper. If a low price is important to you, compare the prices of the individual services with the total price of the package.
If you book your trip independently, you can make plans spontaneously. This lets you travel freely through the country. You don’t have to keep track of existing bookings or let them expire.
For individual trips, you have a wider choice when booking. You are not bound by the organiser’s offer. You are free to choose flights and hotels.
4. Package travel or individual travel: what should I book?
Whether you book an individual trip or a package tour depends on your wishes. If the price is important to you, it is best to compare different offers of package holidays and individual travel options.
Would you like a complete package so that you don’t have to worry about anything while on holiday? Then a package holiday is the right choice. Would you rather decide spontaneously what to do during the holidays? Then an individual trip is better suited for you.
Combination of package holiday and individual travel
A package holiday can be worthwhile if you only want to commit to flights and hotels. You can freely choose the rest of the holiday programme. However, you still benefit from the advantages of a package holiday.
