Glossary

Price reduction

Under section 12(1) PRG, a price reduction is a reasonable reduction of the price for each period during which a package trip is affected by a contractual non-conformity.

In brief

The claim arises where a contracted travel service is not provided as agreed in a package trip. It concerns each period during which the non-conformity affects the trip. A price reduction does not require the package travel contract to be ended.

The amount depends on the circumstances of the individual case. The assessment should consider the travel service affected, the duration and extent of the deviation, and the value of what was actually received. A general percentage cannot replace that concrete comparison. The defect, notification, attempted remedy and supporting documents should therefore be recorded clearly.

A price reduction addresses the lower value of the contracted travel performance and must be distinguished from damages for additional loss. Where the non-conformity is significant, further rights may arise alongside or instead of a price reduction. The overview of package travel and tour operators, the glossary entry on travel defects and the entry on withdrawal from the contract provide further orientation.