Tourism law
Package travel and travel organisers

Package travel defect: price reduction and lost holiday enjoyment

Package travel defect: time-based price reduction, damages and lost holiday enjoyment under section 12 PRG explained for travellers.

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Mag. Bernhard Brandauer, Austrian attorney-at-law

BRANDAUER Rechtsanwälte

Mag. Bernhard Brandauer assists with the legal assessment of tourism contracts, operating issues, levies and liability matters.

30 September 2026 · Mag. Bernhard Brandauer, Austrian attorney-at-law

For a defect in package travel, the price reduction depends on the period and the value of the affected travel service. Section 12(1) of the Austrian Package Travel Act, or PRG, distinguishes this reduction from damages. If the non-conformity was significant and materially interfered with the trip, section 12(2) PRG can also support reasonable compensation for lost holiday enjoyment.

The assessment depends on the booked service, the actual deviation, its duration, notice to the organiser and the remedy offered. The statute does not provide a fixed percentage. A claim should allocate the loss of value, specific expenses and any significant interference with the trip in a traceable way.

Classify the situation

What affected the package trip?

Classify the period, seriousness and response to the travel defect. This shows which records are missing for the claim assessment.

01 Question 1

What situation applies?

Choose the first point of reference for the assessment.

Result

Your orientation

01

Separate the affected days and services.

Record when the deviation began and ended and compare the agreed service with the service actually supplied. Preserve booking records, photographs and messages for each affected period.

02

Assess the weight of the non-conformity and the travel purpose.

Describe which central travel service failed or became unusable and for how long. Add records of replacement solutions, expenses and the concrete interference with the trip.

03

Record the notice and remedy offered.

Keep the notice, the organiser’s response and each remedy offered. Record whether the solution was accepted, when it took effect and which deviation remained afterwards.

04

Create a complete travel chronology.

Arrange the booking, travel events, deviation, notice, response and payments by date. Keep the loss of value separate from specific extra costs and the interference with the trip.

Which period the price reduction covers

Section 12(1) PRG gives the traveller a claim to a reasonable price reduction for each period of the package trip affected by a non-conformity. The claim therefore requires a deviation from the agreed travel service. The relevant questions are when the reduced performance began, when it ended and which service was affected.

A defect lasting for individual days is assessed differently from a deviation lasting for the entire stay. The start and end within a day may also matter, for example where a transfer arrives late or a room becomes available only later. This allocation prevents a short disruption from being transferred automatically to the entire package price.

The amount is assessed by comparing the value of the agreed service with the value actually supplied. The total package price is a starting point for orientation, but it does not replace an assessment of the individual service. The statute contains no generally binding percentage table.

How price reduction and damages differ

The price reduction addresses the loss of value caused by the non-conforming travel service. Damages under section 12(2) PRG address loss caused by the non-conformity. This can include necessary extra costs, additional transport or other specific financial disadvantages that can be proven.

An invoice for a self-arranged replacement service is therefore not automatically part of the price reduction. It should be recorded as a separate item with its cause, necessity, amount and proof of payment. Conversely, a general discount does not necessarily settle every additional loss.

Each item should be counted only once. A table listing the travel service, affected period, agreed value, actual service, expense and supporting record helps avoid overlap. The assessment also depends on the circumstances and on the wording of any settlement statement already given.

When lost holiday enjoyment is assessed

Section 12(2) PRG extends damages for a significant non-conformity to reasonable compensation for lost holiday enjoyment. The trip must have been materially affected. Minor deviations and ordinary dissatisfaction do not automatically satisfy this requirement.

The assessment considers the type, weight and duration of the defect and the purpose of the booked trip. The loss of a central service may carry more weight than a short comfort problem. The organiser’s response and any remedy offered also form part of the overall picture.

The interference should be described concretely. A chronology, photographs, messages, witness accounts and an explanation of which planned use or travel segment became impossible can help. A general statement that the holiday was ruined does not replace this description.

Why notice and a remedy matter

Under section 11(2) PRG, the traveller must notify the organiser without undue delay of a non-conformity noticed during the package trip, taking the circumstances into account. Notice gives the organiser an opportunity to restore the agreed service or offer an appropriate remedy.

Describe the defect so that the affected service is identifiable. Ask for a specific solution and record the response, time and result. If replacement accommodation or another remedy is offered, compare quality, location, meals, transport and remaining disadvantages.

If a required notice is omitted, section 12(2) PRG allows this to be considered as contributory fault under section 1304 ABGB. The rule does not create an automatic loss of every claim. The circumstances remain important, including accessibility, urgency and whether an effective remedy was possible.

Which records make the claim traceable

Start with the booking confirmation and the description of the agreed travel service. Preserve the actual condition, the time it was discovered, the notice and every response from the organiser. Screenshots, photographs, emails, chat messages and payment records should be kept in the form in which they were received or created.

A price reduction requires a traceable assessment of the affected period. Comparing the agreed and actual value can provide a useful starting point. The total package price must not be distributed mechanically across every service where the booking provides no reliable basis for doing so.

Keep a separate list for extra costs and other losses. Record the date, amount, reason, payment and connection with the non-conformity. The preparation checklist for an initial consultation can help organise the records.

How other travel rights fit alongside it

The price reduction under section 12 PRG concerns non-conforming package travel. A price increase before departure follows a different assessment under section 8 PRG. Extraordinary circumstances and withdrawal before departure are addressed in section 10 PRG. These consequences should not be confused with a travel defect during performance.

A flight, rail journey or sea transport may also be covered by separate EU passenger rights. Those claims depend on the particular transport and its requirements. They do not replace the assessment under section 12 PRG, and the same loss must not be compensated twice.

The article on complaints and documentation for package travel looks at recording the defect from the business perspective. The article on a wrong hotel category shows a narrower service comparison. This article provides the cross-cutting assessment of the time-based reduction and serious interference with the trip.

Who should receive the claim

In package travel, the organiser is responsible for providing the agreed travel services. The claim should therefore identify the trip, the non-conformity, the affected period and each claim item. Records may also be submitted through a travel agency or intermediary if it participated in the booking process.

After the trip, prepare an orderly written account. Attach the booking records, chronology, notice, remedy and supporting documents. Explain the loss of value for the price reduction. For damages, state the cause and amount of each item. The significant interference with holiday enjoyment requires its own concrete description.

Whether a claim can be enforced depends on the travel structure, contract, evidence and organiser response. An individual assessment may also clarify whether a settlement statement was given or whether separate transport claims are available.

Key point: The price reduction under section 12(1) PRG concerns each affected period and the value of the defective service. Damages and lost holiday enjoyment are assessed separately. Report the defect promptly, give the organiser an opportunity to provide a remedy and preserve the service, period and supporting records.

Frequently asked questions

Questions about price reduction and holiday enjoyment

Can I claim a price reduction for individual days of a package trip? +
Yes. Section 12(1) PRG links the reasonable price reduction to each period in which the package trip was affected by the non-conformity. Duration, affected service and difference in value are relevant to the amount.
Is lost holiday enjoyment compensated for every travel defect? +
No. Section 12(2) PRG requires a significant non-conformity and a concrete interference with the trip. A minor deviation or mere disappointment does not automatically create this claim.
Do I have to report a travel defect immediately? +
A non-conformity noticed during the trip must be reported to the organiser without undue delay under section 11(2) PRG, taking the circumstances into account. Notice enables a remedy, and failure to notify may be considered contributory fault.
How do I calculate the price reduction? +
The statute contains no general percentage table. Compare the agreed and actual service for the affected period. The booking, service description, duration, photographs and organiser response should support the assessment.

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