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https://www.kkv.fi/en/facts-and-advice/travelling-and-travel-agencies/travelling-and-transport/travel-package/cancellation-of-a-travel-package-contract/
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Cancellation of a travel package contract

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Traveller’s right of cancellation and the obligation to pay the cancellation fee         
Exceptional circumstances
Presumable significant defect
Tour operator's right of cancellation
The tour operator’s right to cancel the trip due to the small number of participants
The tour operator's right to cancel the trip due to force majeure
Refund of payments in the event of a cancellation

Traveller’s right of cancellation and the obligation to pay the cancellation fee

Travellers have the right to cancel a travel package contract at any time before the start of the trip. 

The traveller need not inform the tour operator about the reason for the cancellation.

A tour operator may generally charge the traveller an appropriate and justified cancellation fee if the traveller cancels a travel package contract. Exceptions to this include exceptional circumstances resulting in the cancellation of the trip or a presumably significant defect in the tour operator’s performance.

At the traveller's request, the tour operator must provide the reasons for the amount of the cancellation fee.

  • The cancellation fee may not exceed the actual costs incurred by the tour operator and the fee may not take account of the operating profit lost by the tour operator.
  • The cancellation fee may not exceed the price of the travel package, minus the cost savings from the cancellation and the revenue from the alternative use of the travel service.
  • If a standard cancellation fee is agreed on in the travel package contract, the fee shall be reasonable and be based on the date of cancellation of the contract, the estimated cost savings and the revenue available from the alternative use of the travel service.

Exceptional circumstances

A cancellation fee cannot be charged from a traveller who cancels the contract due to unavoidable and exceptional circumstances prevailing at the destination or in its immediate vicinity.  For instance:

  • the trip cannot be carried out due to an act of war, terrorism, natural disaster, strike or suchlike in the destination or in its vicinity. For example, transport connections are prevented by military operations or essential services (including electricity or water) are not available at the destination due to a natural disaster or a strike.
  • the trip cannot be carried out without endangering the traveller’s life or health. For example, there is an unexpected occurrence of a serious contagious disease or serious disturbances in the destination, which could jeopardise the safety of third parties.

When assessing the traveller's right to cancel the trip on the basis of passenger safety, recommendations for travel by the authorities may be taken into account.

  • The Ministry for Foreign Affairs provides country-specific travel advice related to travel safety, which may, for example, recommend avoiding unnecessary or all travel to the area, or leaving the country.
  • The National Institute for Health and Welfare provides information about the international infectious disease situation, vaccinations, diseases and their prevention and treatment.
  • Finnish diplomatic missions abroad inform about incidents that affect travel safety occasionally or in the short term. 

However, travellers have no right to cancel without a cancellation fee if the traveller was aware of the exceptional circumstances when the contract was concluded.

Presumable significant defect

No cancellation fee may be charged from a traveller whenever the traveller has good grounds to believe that there will be an essential defect in the tour operator’s performance. For example, accommodation is sold to a traveller in a hotel which is incomplete and the completion of the construction work is unlikely.

Tour operator's right of cancellation

The tour operator's right to cancel the trip due to the small number of participants

The tour operator is entitled to cancel the trip if the number of registered participants is lower than the minimum number specified in the contract terms. In such a case, the minimum number of travellers and the deadline for the notice of cancellation of the trip must be mentioned in the contract terms.

The traveller must be informed about the cancellation within the time limit specified in the contract and no later than:

  • 20 days before the start of the trip if the trip lasts more than six days.
  • 7 days before the start of the trip if the trip lasts two to six days.
  • 48 hours before the start of the trip if the trip lasts less than two days.

The tour operator's right to cancel the trip due to force majeure

The tour operator has the right to cancel the trip if unavoidable and exceptional circumstances prevent the realisation of the trip. Travellers shall be notified of any cancellation due to force majeure without undue delay before the start of the journey.

The tour operator has the right to cancel the trip if it cannot be realised

  • due to an act of war, terrorism, natural disaster, strike or suchlike in the destination or in its vicinity. For example, transport connections are prevented by military operations or essential services (including electricity or water) are not available at the destination due to a natural disaster or a strike.
  • without endangering the traveller’s life or health. For example, there is an unexpected occurrence of a serious contagious disease or serious disturbances in the destination, which could jeopardise the safety of third parties.

When assessing the tour operator's right to cancel the trip on the basis of passenger safety, recommendations for travel by the authorities may be taken into account.

  • The Ministry for Foreign Affairs provides country-specific travel advice related to travel safety, which may, for example, recommend avoiding unnecessary or all travel to the area, or leaving the country.
  • The National Institute for Health and Welfare provides information about the international infectious disease situation, vaccinations, diseases and their prevention and treatment.
  • Finnish diplomatic missions abroad inform about incidents that affect travel safety occasionally or in the short term.

In most cases, a strike by the staff at the hotel used by the tour operator does not justify cancellation, as substitute accommodation can usually be arranged. If the staff of other similar accommodation facilities in the travel destination are included in the strike, cancellation is possible.

Refund of payments in the event of a cancellation

The tour operator must refund payments without undue delay and no later than within 14 days of the cancellation of the travel package contract.

If the tour operator cancels the trip due to a low number of participants or by reason of force majeure, the traveller is not entitled to compensation for expenses directly related to the trip, which are rendered unnecessary due to the cancellation (e.g. obtaining a visa or an access passage).

Read more

  • What is a travel package
  • Tour operator’s notification duty
  • Changing the travel package before the trip
  • Cancellation of a travel package contract
  • Defects and refunds
  • Tour operator’s obligation to provide assistance
  • Complaints about a travel package and assistance
  • Assisted travel arrangement

Updated 26.3.2018 Print
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Related topics

  • Information on the new package travel act
  • General terms and conditions for package travel

Legislation

  • Act on Travel Service Combinations (Laki matkapalveluyhdistelmistä) (901/2017)
  • Act on Travel Service Combination Providers (Laki matkapalveluyhdistelmien tarjoajista) (921/2017)
  • Act on the Supervisory and Insolvency Protection Fee Provided by Providers of Travel Service Combinations (Laki matkapalveluyhdistelmien tarjoajan valvonta- ja maksukyvyttömyyssuojamaksusta) (922/2017)
Updated 26.3.2018 Print
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