Package travel price increase under section 8 PRG: costs and traveller choice

An operator may pass on a price increase for a booked package travel arrangement only under the conditions in section 8 of the Austrian Package Travel Act, or PRG. The contract must expressly provide for the adjustment, explain the calculation and refer to the traveller’s right to a price reduction. Only specified cost factors may be used, and the notice must be sent on a durable medium no later than 20 days before departure. If the increase exceeds 8 percent of the total package price, travellers receive a choice.

The assessment therefore requires the original contract, the price breakdown and a precise chronology of the notices. First establish whether the booking is a package travel contract. Then assess the cost factor, clause, calculation, timing and response period separately.

Section 8 PRG concerns the price of a package travel contract. Package travel generally combines at least two different types of travel service for the same trip, such as transport and accommodation. The booking process, offer, total price and roles of the businesses involved matter. A website label is not decisive on its own.

First check whether you concluded one package travel contract or several separate contracts. A stand-alone flight, hotel booking or car rental follows its own rules. The overview on package travel and tour operators explains the basic contract structure.

The possibility of a price adjustment must already be contained in the package travel contract. A general message sent after booking does not create that power. Keep the contractual terms shown or delivered at booking, including attachments and price sheets.

The contract must expressly state that the price may be adjusted after conclusion. It must also refer to the traveller’s right to a price reduction and explain how the change is calculated. A general statement that prices may change when costs change does not automatically answer these requirements.

The adjustment may arise only from the cost factors named by law. They include passenger transport costs caused by fuel or other energy costs, certain taxes and charges imposed by third parties, and relevant exchange rates. The operator must connect the factor to the price of the booked trip.

The clause does not permit an open-ended renegotiation of the package price. The operator must disclose the reason and calculation. Compare the original price, the affected cost item, the relevant starting value and the new amount. If that connection is missing, the increase remains unexplained.

A lawful cost pass-through needs a comprehensible calculation. For fuel or energy costs, the affected transport element should be identifiable. For taxes and charges, the specific charge should be named. For exchange rates, the relevant currency and comparison point should be understandable.

The increase may not exceed the actual rise in the recognised cost factor affecting the operator. A flat increase applied to the whole package price without a link to that cost item leaves the essential calculation open. General increases in the operator’s own costs or a later profit correction do not become statutory adjustment grounds for that reason.

A useful comparison has four columns: original cost factor, new cost factor, share attributable to the booked trip and resulting change. Also check whether the clause provides for a corresponding reduction when costs fall. The statutory mechanism addresses increases and decreases together.

The operator must communicate the price increase clearly and comprehensibly on a durable medium. The notice must state the reason and calculation. An email with saveable content or an attachment may qualify. A fleeting account message or telephone call should be confirmed in writing.

The notice must reach the traveller no later than 20 days before the package begins. Receipt matters, rather than merely the date on which the operator created the message. Record when the email, letter or account notice was actually available to you and keep the complete version.

The 20-day limit concerns the notice of a price increase. It does not by itself prove that the clause, cost factor or calculation is valid. The contractual basis, recognised factor, transparent calculation and timely receipt must all fit together.

If the increase exceeds 8 percent of the total package price, the procedure in section 9(2) to (5) PRG applies. The operator must state the proposed change, a reasonable period for the response and the consequences of failing to respond. The operator may also offer a replacement package.

Within the reasonable period, travellers may accept the change or terminate the package travel contract without paying a compensation charge. A termination notice should identify the contract, the proposed increase and the receipt of the operator’s notice. If no replacement package is accepted, payments must be refunded according to the statutory rules.

A failure to respond within the stated reasonable period may be treated as acceptance. Check the deadline and the stated consequence immediately. If the notice is unclear or the period is too short, ask for clarification in writing. The overview of tour operator changes and information channels distinguishes this price issue from other pre-departure amendments.

If the cost factors that determine the price fall, the traveller is generally entitled to a corresponding reduction. The adjustment follows the same contractual and calculation mechanism. An operator cannot ignore a cost decrease while passing on a cost increase.

The operator may deduct actual administrative costs caused by the adjustment from the reduction. A general unexplained charge does not answer the question whether the cost was actually incurred. Ask for the reduction and any deduction to be shown separately.

The recognised cost factor must still relate to the booked trip. A general market fall is not enough if the transport, tax or currency affecting this package did not change in the same way. Source, period, calculation and connection to the trip must remain comprehensible.

Keep the booking confirmation, pre-contract information, contract, invoice and payment records together. Add the price notice, attachments and proof of receipt. Save screenshots or PDF exports if the amount appeared only in a customer account.

Prepare a chronology of booking, conclusion, original price, notice, receipt, departure and response. Mark whether the increase is at or above 8 percent of the total package price. Recalculate the percentage using the total package price and keep any rounding visible.

Respond clearly if you reject the increase or need a fuller calculation. Do not mix the price increase with a request to change the destination, an operator cancellation or a defect during the trip. For a first structured overview of the booking data, use the package travel check.

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