The European Union has agreed a major update to passenger‑rights enforcement, confirming that travel management companies (TMCs) and all intermediaries will now be legally required to reimburse their own transaction fees when a flight is cancelled, alongside the full refund of the original ticket price.
The change closes a long‑standing loophole in EU refund rules and places new obligations on corporate travel providers and online agencies.
The regulation, published this week, states that intermediaries must return both the fare and any service or booking fees they charged if a flight does not operate. This requirement is explicitly confirmed in the opening of the article: “Travel management companies and other intermediaries will be obliged to reimburse their own transaction fees as well as the original ticket price for cancelled flights” .
The update forms part of a broader EU effort to strengthen passenger protections and ensure consistency across the refund chain. Until now, airlines were required to refund cancelled flights, but intermediaries could retain their service fees — a practice that often left travellers and corporate clients out of pocket. Under the new rule, intermediaries are treated as part of the refund ecosystem, responsible for returning all charges they applied.
The regulation also introduces mandatory pricing transparency, requiring intermediaries to clearly disclose fees upfront and distinguish between airline‑controlled costs and intermediary‑added charges. This aims to eliminate confusion for passengers and corporate buyers, ensuring they understand exactly what they are paying for and what is refundable in the event of disruption.
For corporate travel buyers, the change is significant. It guarantees full reimbursement, regardless of booking channel, and strengthens protection for employees travelling on EU‑regulated itineraries. It also places new pressure on intermediaries to streamline refund operations and ensure compliance with EU enforcement standards.
The regulation marks one of the most consequential updates to EU passenger‑rights policy in recent years, aligning refund obligations across airlines, TMCs and online travel agencies. As enforcement begins, intermediaries will face increased scrutiny and travellers will benefit from clearer, fairer and more transparent refund processes.
