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Right of Termination in Package Tour Contracts

Right of Termination in Package Tour Contracts

This article discusses the consumer’s right to terminate a package tour contract under Law No. 6502 on the Protection of Consumers and the Regulation on Package Tour Contracts.

According to the legislation, consumers may cancel the contract without providing any justification and without penalty if the cancellation is made more than 30 days before the start of the tour. For cancellations made less than 30 days in advance, the cancellation fee rates specified in the contract may be applied. However, in cases of force majeure (such as health issues, natural disasters, epidemics, etc.), cancellation without penalty and a full refund is possible regardless of the time remaining.

In addition, consumers who are unable to participate in the tour have the right to transfer their contract to another individual. If the tour operator makes a significant change to the agreement, the consumer has the right to withdraw from the contract without incurring any penalty.

This article provides practical guidance on how consumers can exercise their rights, the procedural details of cancellations and refunds, and available legal remedies such as consumer arbitration boards and courts.

If executed at the right time and for valid reasons, cancelling a package tour contract is a significant right for consumers. Being informed of these rights ensures that holiday plans are legally safeguarded.

 

What Is a Package Tour Contract?

A package tour contract is a type of agreement where at least two services—such as transportation and accommodation—are offered together by a tour operator or intermediary at an all-inclusive price for trips lasting longer than 24 hours. For example, if airfare, hotel, and tour guide services are sold together as a single package, it falls under this definition. This is outlined in Article 51 of Law No. 6502 and the relevant Regulation on Package Tour Contracts.

The parties involved in the contract are the consumer and the tour organizer or intermediary. The consumer is usually the individual purchasing the holiday; the tour organizer is the company preparing or selling the package. Before the contract is signed, the law requires that consumers be provided with a brochure that includes detailed information such as tour dates, transportation details, accommodation, total price, and cancellation terms. This ensures the consumer is fully informed before committing.

 

Consumer’s Right to Terminate a Package Tour Contract

Consumers have the unilateral right to cancel a package tour contract under certain conditions, a right that is protected under the law and the relevant regulation. According to Article 16 of the Regulation, the consumer can terminate the contract by notifying the tour operator in writing or through a durable medium (e.g., email). The timing of the cancellation affects the refund process:

  • Termination More Than 30 Days Before Tour Start: If the cancellation notice is given at least 30 days before the tour starts, the consumer is entitled to a full refund, excluding any mandatory taxes or fees (e.g., visa or service fees). For example, if you cancel a vacation booked three months in advance with more than 30 days remaining, you are entitled to a full refund minus only any non-refundable legal charges.

  • Termination Less Than 30 Days Before Tour Start: If less than 30 days remain, the consumer may still cancel, but the tour company may deduct a cancellation fee as specified in the contract. Many companies apply a tiered deduction system (e.g., 20% for cancellations 15–30 days in advance, 30% for 7–15 days, etc.). Early cancellation is advisable to minimize financial loss.

  • Termination Due to Force Majeure: If extraordinary and unforeseeable circumstances beyond the consumer’s control (e.g., serious illness, natural disaster, epidemic, war) make it impossible to proceed with the trip, the consumer may cancel without penalty—even with fewer than 30 days remaining. In such cases, the full amount paid, excluding non-refundable expenses to third parties and mandatory charges, must be refunded. For instance, if you suffer a serious illness or a natural disaster affects the travel destination, you can claim a full refund.

Even if a contract includes clauses attempting to waive or limit these rights (e.g., “no refunds under any circumstances”), such clauses are considered invalid under the law. The Regulation provisions are mandatory and cannot be overridden to the consumer’s detriment.

The cancellation request should always be made in writing and in a provable manner (e.g., via notary, registered letter, email, or the company’s online system). The contract is deemed terminated upon receipt of the notice by the tour company, triggering their obligation to issue a refund. According to Article 16(5) of the Regulation, the refund must be made within 14 days of receipt of the cancellation notice. If not, the consumer has the right to pursue legal action.

Therefore, if you foresee being unable to attend your scheduled trip and the reason is not covered by force majeure, remember the 30-day rule: cancel as early as possible and in writing to secure a full refund.

 

Transfer of the Contract (In Case of Inability to Attend)

Besides cancellation, consumers also have the right to transfer their contract to another person. If a consumer is unable to attend the tour due to a personal obstacle, they may transfer the contract to someone else who meets the same conditions. As per Article 15 of the Regulation, the tour operator must be notified in writing or via a durable medium at least 7 days before the start of the tour. For example, if the traveler falls ill, they may request that a relative take their place if there are more than 7 days remaining.

The new participant is deemed to have accepted all conditions of the original contract. The tour company may only charge reasonable and documented additional expenses (such as a name change fee for airline tickets). Upon transfer, both the original and the new participant are jointly liable for the remaining payment and any extra costs, offering financial security to the tour company. In practice, companies often allow such transfers with minimal cost.

 

Right to Terminate Due to Material Changes

Apart from voluntary cancellations, if the tour operator makes a significant (material) change to the terms of the contract that negatively affects the consumer, the consumer has the right to terminate the contract without penalty. For instance, changing the tour’s departure date, downgrading the hotel, or increasing the tour price would constitute material changes. The tour operator must inform the consumer and obtain their consent. If the consumer rejects the change, they can cancel without incurring any penalty, and the operator must refund the payment or offer a comparable alternative.

 

Refund Process and Legal Remedies

Once a package tour contract is properly cancelled, the consumer has the legal right to a refund within 14 days. But what if the tour company fails to comply? Consumers may turn to legal remedies. In Turkey, disputes arising from consumer transactions may be brought before Consumer Arbitration Boards or Consumer Courts.

Decisions by Consumer Arbitration Boards are binding and have the effect of a court judgment. They typically resolve disputes within 6 months and the process is free of charge, making it highly accessible. If a company fails to comply with a favorable ruling, the consumer can enforce it through the courts. If pursued in court, the case generally proceeds after a mediation stage, and may involve expert evaluation if needed. Turkey’s legal framework strongly supports consumer protection, so if pursued properly, justice is typically served.

 

Conclusion

While package tour contracts offer convenience in planning vacations, sometimes cancellations are inevitable. As a legal professional specializing in consumer law, my advice is to understand your rights and act accordingly when cancellation is necessary. In summary:

  • Timing Matters: Cancel at least 30 days in advance for a full refund. Last-minute cancellations may involve deductions.

  • Don’t Hesitate in Force Majeure Cases: If something beyond your control (e.g., illness, disaster) prevents travel, you are legally entitled to cancel without penalty.

  • Provide Written Notice: Always notify in writing and in a verifiable way (e.g., notary, email). Verbal notifications are harder to prove.

  • Review the Contract: Familiarize yourself with cancellation terms and deduction rates in your contract—even if unfair terms are unenforceable, they give insight into company practices.

  • Consider Transfers as an Option: Transferring your package to someone else is a valid alternative that may save you money.

  • Use Legal Remedies: If the company fails to refund, don’t hesitate to use consumer arbitration or court action. Seek legal support if needed.

 

Ultimately, the right to cancel a package tour contract is a powerful tool protected by law. Both legislation and Supreme Court precedents aim to ensure that consumers can obtain fair refunds under reasonable conditions. Being informed before your trip helps prevent unpleasant surprises and equips you to assert your rights when necessary. Remember, being an informed consumer is your best protection. Wishing you happy and trouble-free holidays!

 

Attorney and Mediator Fatih Mehmet Tercan

Right of Termination in Package Tour Contracts