When all-inclusive includes jackhammers: EU court says full refund is fair

(CN) — Travelers can demand a full refund when serious disruptions such as hotel demolitions or construction noise ruin the value of a package trip, the EU’s top court ruled Thursday in a case brought by a Polish couple.

The Court of Justice of the European Union made clear that vacationers don’t have to settle for partial refunds when a holiday falls far short of what was promised. Even if some services are provided, a full refund is on the table when the trip as a whole loses its value.

The case began with a Polish couple’s all-inclusive package holiday at a five-star hotel in Albania in September 2023. But their supposedly relaxing getaway took a sharp turn on day one, when they woke up to the sound of demolition crews tearing out the hotel’s two swimming pools.

For the next four days, the noise ran from early morning to evening, as bulldozers tore through not just the pools but also the promenade, beachfront and sea access — all features the couple had paid for.

Things didn’t get better as the week went on. Construction started on a fifth floor, with workers using the same elevators as guests to haul up building materials. Meal service broke down as well, with long lines forming early and afternoon snacks removed altogether.

By the end of the trip, the couple said the hotel had failed to deliver what they paid for and took the tour operator to court seeking a full refund and damages.

The tour company argued it wasn’t to blame. The demolition had been ordered by local authorities, and they said they were simply following official instructions. They claimed the disruption fell under a legal category in EU law that excuses companies from liability when unexpected events are completely out of their control.

The court wasn’t convinced. It said travel companies can’t dodge responsibility just because a public authority ordered the disruption — especially if they had time to act or saw it coming. As the judges put it, “situations arising from measures taken by a public authority, such as the demolition of tourist infrastructure pursuant to a decision of a public authority, do not come within the concept of ‘unavoidable and extraordinary circumstances,’ within the meaning of that provision.”

Tour operators, the court stressed, are expected to act with care and prepare for foreseeable risks, particularly when there are signs of trouble with local authorities.

The court also made clear that refund and compensation rights are not about punishing travel companies. They are simply meant to put travelers back in the position they were promised. It is about fairness, not penalties.

The decision sets a clear benchmark for vacationers across Europe, especially as the travel industry picks up speed after the pandemic. And it sends a message to tour operators: If your hotel is getting bulldozed during someone’s stay, give them a heads-up or be prepared to cover the cost.

The parties to the case were anonymized in court filings. Courthouse News contacted the Rzeszów District Court to request contact details for the travelers and the tour operator, and separately asked the Polish government for comment. Neither responded.

With the EU court’s guidance now on the record, the case heads back to the Polish district court, which will apply the ruling to the facts at hand. The top court’s interpretation is final and binding, meaning there is no appeal. But it will now be up to the local judge to decide how much the travelers are owed, if anything at all.

Courthouse News reporter Eunseo Hong is based in the Netherlands.