Politicians voted in favour of the report which calls for EU-wide minimum tourism safety standards.
It comes after a coroner said safety standards should be improved following the deaths of two children from carbon monoxide poisoning while in Corfu.
Yorkshire MEP Linda McAvan said action was needed to prevent such tragedies happening again.
Bobby and Christi Shepherd, aged six and seven, died at the Louis Corcyra Beach Hotel in October 2006.
An inquest jury ruled in May they were unlawfully killed by a faulty boiler.
In a report, coroner David Hinchliff said the government must push for a new EU-wide safety standard.
Currently there is no set European-wide minimum standard regarding carbon monoxide safety in tourist accommodation.
The European Parliament vote now urges the European Commission to look at instigating legislation.
Ms McAvan said: "It's good news, it has taken us nine years to get here.
"Now what we need is action by the European Commission to put a law on the table, but it will only do that if it has strong support from the governments as well as MEPs, so our own government should now act."
Mary Creagh, the Wakefield MP for Bobby and Christy's family, said there needed to be a better understanding of carbon monoxide.
"We know that carbon monoxide poisoning is not well recognised by the public and is not understood often by people in the medical profession.
"The people who were in Bobby and Christy's bungalow the week before they died presented to hospital and were treated for gastroenteritis, when they clearly too had been poisoned by carbon monoxide."
MEPs have backed proposed legislation to improve carbon monoxide safety in holiday accommodation across Europe.