Partner Sydney
"Whether these new conditions of carriage, which distinguish between different reasons for not using flights in the booked sequence, will ultimately withstand judicial scrutiny."
Germany: airfare recalculation clauses are unfair to consumers?
In its judgment of 28 October 2025 (X ZR 110/24), the Federal Court of Germany held that a clause in an airline’s general conditions of carriage is invalid if it provides for automatic recalculation of an airfare when a passenger does not use the flights in the booked sequence. The court ruled that a clause allowing the airline to recalculate the airfare if the passenger did not travel on the flights in the sequence of the booking constituted an unreasonable disadvantage, particularly because it did not distinguish between passengers genuinely unable to travel in accordance with the sequence of flights in their booking and those who sought to manipulate the flight sequence to take advantage of lower airfares.
The decision does not clearly define the change in the passenger’s plans, which would be the basis to determine if an automatic recalculation clause is unfair and this may become the subject of further disputes and litigation. It is also unclear how airlines should deal with grounds which cannot be verified. Notwithstanding these issues, some airlines have already amended their conditions to carriage to reflect this judgment. These changes include express exceptions to terms requiring automatic recalculation, such as subsequent changes of plans, illness, force majeure and other circumstances beyond the passenger’s control, together with new requirements to substantiate passenger claims, such as providing medical and accident reports.
It remains to be seen whether these new conditions of carriage, which distinguish between different reasons for not using flights in the booked sequence, will ultimately withstand judicial scrutiny.
Indonesia: impact of the new criminal code
From 2 January 2026, a new criminal code will come into force in Indonesia. Whilst full implementation may take up to three years, the new code includes a ban on sex outside marriage. This clarifies and expands on restrictions on adultery in the existing criminal code. Only a spouse, child or parent of one of the parties can file a complaint and this may serve to limit the application of the ban. Offenders can be jailed or fined INR10m (approximately US$600). Although investigation and prosecution appears limited to individuals, hotels and tour operators should be aware of and prepared for the public, media and brand consequences of hotel guests being arrested on hotel premises for breaching the ban on sex outside marriage.
Key contacts
"Hotels and tour operators should be aware of and prepared for the public, media and brand consequences of hotel guests being arrested on hotel premises for breaching the ban on sex outside marriage."
Malaysia: a new e-commerce law on the horizon?
A draft new law governing e-commerce is under public consultation and review and is expected to become law in Malaysia in 2026. This appears intended to replace the current legal regime, including the Electronic Commerce Act (2006). The draft bill, if enacted, will focus on fairness for all stakeholders, including consumers, businesses and platforms. To address concerns about the unenforceability of Malaysian laws on businesses and platforms that are based outside Malaysia, the Malaysian government has indicated that the new e-commerce laws may have extraterritorial application. This will be achieved through cooperation with other governments, reflecting the limited ability of national governments to regulate the activities and conduct of offshore businesses and platforms. This will require cooperation from other countries and territories. Without such cooperation, offshore business and platforms may not be subject to the new e-commerce laws or may relocate their activities to countries or territories which will not cooperate with the Malaysian government or do not have diplomatic relations with Malaysia.
Singapore: SAF levy
From 1 April 2026, tickets for all flights departing Singapore will be subject to a sustainable aviation fuel (“SAF”) levy which will apply to passengers, cargo and business jet flights. The levy will not apply to passengers transiting Singapore. This measure is part of the Sustainable Air Hub Blueprint for Singapore and is intended to support and finance the use of SAF for flights departing Singapore with a 2026 goal of at least 1% SAF for all flights departing Singapore’s two airports: Changi and Seletar.
Thailand pilots lifting the afternoon alcohol sale ban
From 3 December 2025, Thailand has lifted its prohibition on the sale of alcohol between 14:00 and 17:00 as part of measures to stimulate economic growth and boost the Thai tourist sector. Alcohol can now be sold and consumed in bars, restaurants and other public venues from 11:00 to midnight (00:00). Previously, international airports, licensed nightclubs and hotels were exempt from the prohibition.
"Increased compliance requirements in relation to drinkers who are underage and/or intoxicated."
The prohibition has been lifted for six months and the Alcohol Beverage Control Commission (“the Commission”) will assess the impact of this before deciding whether the afternoon sale ban should be permanently lifted. The Commission also suspended the ban on alcohol consumption at the point of sale, this effectively means that drinking already purchased alcohol is permitted until 01:00.
This follows the implementation of the Alcoholic Beverage Control Act (No. 2) (2025) in November 2025, which significantly expanded restrictions on advertising and promoting alcohol. This includes prohibiting public figures and influencers from using their reputation to promote alcohol and event sponsorships which may indirectly promote alcohol consumption.
This law also prohibits the sale of alcohol to persons under 20 years old or those who are intoxicated. Alcohol sellers could be held liable for damage and injury caused by their customers who are underage or intoxicated.
Whilst bans on serving alcohol between 14:00 and 17:00 and on Buddhist holidays in hotels were separately lifted in May and June 2025, lifting the ban on the sale of alcohol in the afternoon more broadly is part of efforts to revitalise the Thai tourist sector.
Key takeaways:
- end alcohol sales at midnight and on premises consumption by 01:00;
- increased compliance requirements in relation to drinkers who are underage and/or intoxicated; and
- more complex requirements for advertising and sponsorship.
"It is unclear whether there will be sufficient support in the new cabinet for these reforms to the Hotels Act."
Thailand: status of reforms to the Hotels Act unclear
Thailand will hold general elections in February 2026. Amendments to the Hotels Act (2004) proposed by members of the current parliament will lapse on dissolution of the parliament. The more significant reforms, which have been proposed by the Office of the Council of State, will not automatically lapse but will require approval of the new cabinet to proceed further. Until the outcome of the election is known, it is unclear whether there will be sufficient support in the new cabinet for these reforms to the Hotels Act. Certain key aspects of the amendments do not have broad industry support, particularly in relation to the proposed new definition of ‘accommodation’, regulations based on the size and nature of hotel operations and regulation of online accommodation platforms.
Key contacts
Partner Sydney
Partner Frankfurt
Senior Associate Bangkok
