BGH rulings: No cancellation fees in the event of cancellation due to Corona

A health impairment or health risk due to the corona pandemic can entitle travelers to cancel a booked package holiday free of charge. This was decided by the Federal Court of Justice in two individual cases.

The legal situation is clear: according to Section 651h BGB, package travelers can withdraw from the travel contract at any time before the start of the trip. Although the tour operator then loses the right to the agreed travel price, it can demand reasonable compensation. The BGH had to clarify whether this also applies in the event of a corona-related withdrawal. The rulings are groundbreaking.

No compensation for timely withdrawal

Travelers who cancel a booked package tour due to the coronavirus pandemic may not have to pay a cancellation fee. This was decided by the BGH on 30 August 2022. In this case, the plaintiff had booked a Danube cruise for around 1,600 euros and canceled it two weeks before departure. The tour operator went ahead with the cruise with a reduced number of participants - and retained almost 1,000 euros from the plaintiff as cancellation costs. Wrongly, ruled the Federal Court of Justice (Ref.: X ZR 66/21). The cancellation was made due to the considerable, unreasonable adverse effects on the health of the (elderly) plaintiff on board - and was therefore free of charge.

Closed hotel not a reason for free cancellation

If the booked hotel is closed due to Corona, this does not initially constitute a reason for a cost-free withdrawal. Although accommodation in another hotel at the same location is generally a travel defect, this does not automatically justify a cost-free withdrawal from the trip. Rather, it must be examined on the basis of the type and duration of the impairment to what extent a hotel closure could actually constitute an unreasonable impairment - according to the BGH in a second ruling (case reference: X ZR 84/21).

The circumstances of the individual case determine the cancellation costs

The judgments prove one thing above all: Corona-related cancellations cannot be assessed across the board. The decisive factor is whether the travel defect is actually "unreasonable" for travelers. The circumstances on site and the duration of the defect as well as the type of trip, the age of the traveler and any pre-existing conditions are taken into account. If the overall picture is that the travel deficiency is "significant", travelers can cancel free of charge. Otherwise, cancellation costs may be incurred.