Your package holiday is cancelled — or you need to cancel it. What are your rights? Under UK law, package holidays give you stronger protection than booking flights and hotels separately. This guide explains the Package Travel Regulations, ATOL and ABTA protection, and exactly what you can claim back.
What Counts as a Package Holiday?
A package holiday is a combination of at least two travel services sold as a single product. This includes:
- Flight + hotel booked together as one transaction
- Flight + hotel + transfers as a combined deal
- Hotel + ferry booked as a package
- Any combination sold at an inclusive price
Under the Package Travel and Linked Travel Arrangements Regulations 2018, you have legal protections that do not apply to bookings made separately.
What Is NOT a Package?
- Flight and hotel booked separately on different websites
- A hotel that offers to book your flights for you (linked travel arrangement, not a full package)
- A flight-only booking, even if the airline sells it with a “hotel recommendation”
Your Rights If the Holiday Company Cancels
If the travel organiser cancels your package holiday, you are entitled to a full refund — no deductions, no vouchers, no credits.
What the Organiser Must Provide
| Situation | Your Right |
|---|---|
| Full cancellation by organiser | Full refund within 14 days |
| Significant alteration to the package | Option to accept changes, accept alternative, or cancel for full refund |
| Price increase of more than 8% | Cancel for full refund |
| Force majeure event | Full refund (no obligation to offer alternative) |
Full Refund Rule
The travel organiser must refund all money paid within 14 days of cancellation. This includes:
- The full holiday price
- Booking fees
- Any extras you paid for (excursions, upgrades, transfers)
- Insurance if sold as part of the package
The organiser cannot:
- Force you to accept vouchers instead of a refund
- Offer credit instead of cash
- Deduct administration fees from the refund
Significant Alterations: Your Rights
If the travel organiser makes a significant change to your holiday before departure, you have three options:
- Accept the change — if it’s acceptable to you
- Accept an alternative — of comparable or higher quality, at no extra cost
- Cancel for a full refund — if the change is not acceptable
What Counts as a “Significant” Change?
- Different destination or resort
- Different hotel or accommodation type (downgrade)
- Different departure dates or airports
- Significantly longer journey times
- Missing advertised facilities or services
Example: You booked a 4-star hotel with a pool and the organiser moves you to a 3-star hotel without a pool. This is a significant alteration — you can cancel for a full refund.
Your Rights If YOU Cancel
If you cancel your package holiday, the travel organiser can charge cancellation fees. The amount depends on how far in advance you cancel.
Standard Cancellation Charges
| Time Before Departure | Typical Cancellation Charge |
|---|---|
| More than 70 days | Loss of deposit |
| 69-56 days | 30% of total price |
| 55-43 days | 50% of total price |
| 42-29 days | 70% of total price |
| 28-15 days | 90% of total price |
| 14 days or less | 100% of total price |
Note: These are industry standard charges. Your specific terms may vary — always check your booking confirmation.
Real-World Example: 2,000 Holiday Cancelled 2 Weeks Before
You book a package holiday for 2,000. Two weeks before departure, you need to cancel.
- Cancellation charge: 100% (within 14 days)
- Refund due: 0
- You lose: 2,000
However, if you have travel insurance with cancellation cover, you may be able to claim the 2,000 back from your insurer (subject to the policy terms and any excess).
When You Might Get a Partial Refund
Some travel organisers offer more lenient cancellation terms. Check your booking confirmation for the exact cancellation policy. Some offer:
- Free cancellation up to a certain date
- Reduced charges for medical emergencies
- Flexible booking options at a higher price
ATOL Protection
ATOL (Air Travel Organiser’s Licence) protects you when you book a package holiday that includes a flight. It is run by the Civil Aviation Authority (CAA).
What ATOL Covers
- Flight-inclusive package holidays
- Flight-only bookings through a tour operator
- Components sold together that include flights
What ATOL Does NOT Cover
- Flight-only bookings where you pay the airline directly
- Accommodation-only bookings
- Holidays booked outside the UK
How ATOL Protection Works
If your travel company goes bust before or during your holiday:
- Before departure: You get a full refund
- Abroad: The ATOL scheme will bring you home and/or provide a refund
How to Check ATOL Protection
Look for the ATOL certificate when you book. The travel company must provide one. You can also check the CAA’s ATOL holder database online.
If you don’t receive an ATOL certificate, you may not be protected. Contact the CAA immediately.
ABTA Protection
ABTA (Association of British Travel Agents) protects package holidays that do not include flights. ABTA is a trade association, not a government scheme, but it provides strong consumer protection.
What ABTA Covers
- Package holidays without flights (e.g., coach, train, or ferry packages)
- Accommodation-only bookings through ABTA members
- Some linked travel arrangements
How ABTA Protection Works
If your ABTA-member travel company goes bust:
- You get a full refund
- If you’re abroad, ABTA will arrange your return home
ABTA vs ATOL
| Feature | ATOL | ABTA |
|---|---|---|
| Flight-inclusive packages | Yes | No |
| Non-flight packages | No | Yes |
| Government-backed | Yes (CAA) | No (trade association) |
| Compensation for company failure | Yes | Yes |
Tip: Many travel companies are both ATOL and ABTA protected. Check both when booking.
UK Package Travel Rules vs EU Package Travel Directive
After Brexit, the UK retained the EU’s Package Travel Directive through the Package Travel and Linked Travel Arrangements Regulations 2018. The rules are very similar, with some key differences:
Key Similarities
- Full refund if the organiser cancels
- Significant alteration rights
- Cancellation charges based on timing
- Organiser’s liability for performance of the package
Key Differences
| Feature | UK Rules | EU Directive |
|---|---|---|
| Definition of package | Slightly broader | Standard definition |
| Linked travel arrangements | Additional protections | Less comprehensive |
| Price increase threshold | 8% | 8% |
| Refund timeline | 14 days | 14 days |
| Dispute resolution | UK ombudsman schemes | EU national schemes |
For UK consumers booking with UK companies, the UK rules apply regardless of where the holiday takes place.
How to Claim: Step by Step
Step 1: Document Everything
- Save your booking confirmation and ATOL/ABTA certificate
- Keep all correspondence with the travel company
- Screenshot any changes to your booking
- Save receipts for any additional costs
Step 2: Contact the Travel Company
Write to the travel company citing the Package Travel Regulations. Include:
- Your booking reference
- Details of the cancellation or alteration
- Your desired outcome (full refund, compensation, or both)
- A deadline for response (typically 14 days)
Step 3: Escalate If Rejected
If the travel company refuses your claim:
- Complain formally — use their internal complaints process
- Contact ABTA or ATOL — if the company is a member
- Use the Travel Ombudsman — an independent dispute resolution service
- Small claims court — for amounts up to 10,000 in England and Wales
Template Cancellation Claim Letter
Dear [Travel Company],
I am writing to claim a full refund under the Package Travel and Linked Travel Arrangements Regulations 2018 for the following booking:
- Booking reference: [number]
- Holiday: [destination, dates]
- Total price: [amount]
- Reason for claim: [cancellation by organiser / significant alteration]
Under Regulation 13(2), I am entitled to a full refund of all monies paid as the package has been [cancelled / significantly altered]. I request payment within 14 days of this letter.
Please make payment to:
- Name: [your name]
- Account: [sort code and account number]
- Address: [your address]
I enclose a copy of my booking confirmation and ATOL/ABTA certificate.
If I do not receive a satisfactory response within 14 days, I will escalate this matter to [ABTA / the CAA / the Travel Ombudsman].
Yours sincerely, [Your name]
Real-World Example: Full Refund Won
Case: A couple booked a 3,500 package holiday to the Maldives with a UK tour operator. Six weeks before departure, the operator cancelled the holiday due to “operational reasons” and offered a credit note valid for 12 months.
Outcome: Under the Package Travel Regulations, the couple was entitled to a full cash refund — not a credit note. After citing the regulations and threatening escalation to ABTA and the Travel Ombudsman, the operator refunded 3,500 within 10 days.
Travel Insurance and Package Holidays
Travel insurance is essential for package holidays, even with ATOL and ABTA protection.
What Travel Insurance Covers That ATOL/ABTA Don’t
- Cancellation due to your own illness or bereavement
- Cancellation due to your partner’s illness
- Cancellation for any reason not covered by the Package Travel Regulations
- Medical expenses abroad
- Lost or stolen belongings
When to Buy Travel Insurance
Buy travel insurance at the time of booking to get maximum cancellation cover. Most policies cover you from the date of purchase.
How to Claim on Travel Insurance
- Contact your insurer as soon as you need to cancel
- Provide evidence (medical certificate, death certificate, etc.)
- Complete the insurer’s claim form
- Submit receipts and booking confirmation
- Wait for the claim to be processed (typically 2-4 weeks)
Frequently Asked Questions
Can the travel company increase the price after I book? Yes, but only up to 8% of the total price. If they increase it by more than 8%, you can cancel for a full refund. Price increases due to fuel surcharges, taxes, or exchange rate changes are included in the 8% threshold.
What if the hotel is different from what was advertised? If the difference is significant, you can claim a price reduction or cancel for a full refund. Minor differences (e.g., room layout) may not qualify.
Can I transfer my booking to someone else? Most travel companies allow name changes, but they may charge a fee. Check your booking terms.
What if I booked through a travel agent, not directly with the tour operator? Your contract is with the tour operator, not the travel agent. Contact the tour operator for cancellation claims.
What if the holiday is disrupted but not cancelled? You may be entitled to a price reduction for loss of enjoyment. This is harder to claim but possible under the Package Travel Regulations.
Does ATOL cover cruise holidays? Yes, if the cruise is sold as part of a flight-inclusive package. Check for an ATOL certificate.
Summary
- Package holidays give you stronger protection than booking separately
- If the organiser cancels, you get a full refund within 14 days
- Significant alterations give you the right to cancel for a full refund
- If you cancel, charges depend on how far in advance you cancel
- ATOL protects flight-inclusive packages; ABTA protects non-flight packages
- Always buy travel insurance at the time of booking
- Keep all documentation and escalate to ombudsman schemes if your claim is rejected