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Package Holiday Guide
Am I Owed a Refund for a Cancelled Package Holiday?
Cancellations, big changes, price rises, cancelling yourself, problems on holiday, companies going bust, ATOL and how to get your money back.
Last reviewed: 25 September 2026Sources: listed at the end, each checked on the date shownEngland, Wales, Scotland and Northern Ireland
Who this guide is for
You booked a package holiday (for example a flight and a hotel booked together) and the travel company cancelled or changed it, put the price up, or went bust; or you want to cancel it yourself; or something went wrong while you were away. The rules come from UK law (the Package Travel and Linked Travel Arrangements Regulations 2018) and are the same in England, Wales, Scotland and Northern Ireland. Only the time limit for going to court and the steps before court differ, and that is marked for each nation.
This guide is about holidays you book. It is not about holiday pay or annual leave from work.
Compensation from an airline for a delayed or cancelled flight: see our flight delay guide.
A flight, hotel or car hire you booked on its own, not as part of a package: your rights are against the company you booked with. Ask the consumer helpline for your nation.
Illness or injury on holiday, and lost or damaged luggage: they have their own rules. Ask a solicitor or the consumer helpline.
Business travel booked through your employer's arrangement with a travel company, handing your booking over to someone else, and travel insurance claims: ask the travel company, your insurer or the consumer helpline.
Chargeback (asking your bank to reverse a debit card payment): ask your bank or the consumer helpline.
If the travel company cancels your package, you get a full refund of everything you paid, within 14 days.
If it has to make a significant change to a main part of the holiday before you go, you can accept the change or cancel without a fee and get a full refund.
A price rise after you book is only allowed if the contract allows it, it comes from fuel costs, taxes or fees, or exchange rates, and you are told at least 20 days before the package starts. A rise of more than 8% of the package price lets you cancel with a full refund.
You can cancel yourself at any time before you go, but you may have to pay a cancellation fee. There is no fee if unavoidable and extraordinary circumstances at or near your destination significantly affect the holiday or getting there.
The organiser (the company that put the package together) is responsible for every part of it, even the parts other companies provide, such as the hotel or the flight.
If the company goes bust, the protection it must have (ATOL for package holidays with a flight) should refund you, or get you home if you are away.
What the rules depend on
Is it a package? Did you book two or more travel services (such as a flight and a hotel) for the same trip, together from one company, website or shop?
Who is the organiser: the company that put the package together and sold it to you?
What happened: did the company cancel, change the holiday or raise the price, do you want to cancel yourself, or did something go wrong while you were away?
When were you told, and how many days was that before the package was due to start?
Were there serious problems at or near your destination that were outside everyone's control?
How did you pay: credit card, debit card or another way? And who did you pay: the organiser or a travel agent?
Did you get an ATOL certificate?
When did you book? The rules on what counts as a package change for bookings made on or after 6 April 2027.
Is it a package?
A package is at least two different types of travel service for the same trip or holiday. The types are transport (such as flights), accommodation, car or motorbike hire, and other tourist services.
They are a package if one company put them together before you made one contract for all of them. They are also a package if they were bought from one shop, website or phone line and chosen before you agreed to pay, sold at one total price, or sold as a "package" or something similar.
A flight and a hotel booked together from one travel company or website are normally a package.
Linked travel arrangement: if one company helped you book separate travel services for the same trip, it may be a linked travel arrangement instead. That is when you chose and paid for each one separately in one visit to its shop or website, or it sent you to another company and you booked there within 24 hours. That is not a package and does not get the package rights in this guide. It can have protection if a company you paid goes bust: check what you were told when you booked.
For bookings made on or after 6 April 2027, new rules apply. The first kind of linked travel arrangement (separate choices and payments in one visit to one company) becomes a package, and linked travel arrangements are removed from the rules. Bookings made before then keep the rules in this guide.
The organiser is responsible
The organiser is responsible for every travel service in the package, whoever provides it. Complain to the organiser, not to the hotel or the airline. You can also contact the organiser through the travel agent you booked with.
If the company cancels your holiday
You are entitled to a full refund of all payments made for the package. The organiser must pay it within 14 days of the cancellation.
The organiser owes no extra compensation if it cancelled because fewer people booked than the minimum number stated in your contract and it told you in time. It also owes none if unavoidable and extraordinary circumstances stopped it and it told you without undue delay before the holiday started. In other cases you may also be owed compensation: the standard information every organiser must give you says you are entitled to a refund and compensation where appropriate.
The CMA (the UK competition regulator) has warned package firms that people must be offered the full refund within 14 days, not only a voucher or credit note.
If the company changes your holiday before you go
The organiser cannot change your contract on its own before the holiday, apart from the price (below). It can only do so if the contract allows it, the change is insignificant, and it tells you clearly in a form you can keep, such as a letter or email.
If it has to make a significant change to a main part of the holiday, cannot meet a special requirement it agreed to, or wants to raise the price by more than 8%, it must tell you without undue delay. It must give you a reasonable time to decide, and tell you what happens if you do not reply.
You can accept the change, or cancel without paying a fee. If you cancel, you can take a substitute holiday if one is offered, or a full refund within 14 days.
If the changed holiday or the substitute is of lower quality or cost, you are entitled to a fair price reduction.
Reply in writing within the time you are given.
Whether a change is significant depends on the facts. If you are not sure, ask the consumer helpline for your nation before you decide.
Price rises after you book
The price can only go up if the contract says so, and only because of changes in fuel or other power costs for transport, taxes or fees charged by others (such as tourist taxes or airport fees), or exchange rates.
The contract must also give you a price cut if those costs go down.
Whatever the size of the rise, the organiser must tell you clearly, with the reason and how it was worked out, in a form you can keep, at least 20 days before the package starts.
Told fewer than 20 days before the package starts: the rise cannot be charged.
A rise of more than 8% of the total package price: you can accept it, or cancel without a fee and get a full refund within 14 days (or take a substitute holiday if one is offered).
Cancelling the holiday yourself
You can cancel at any time before the package starts, but you may have to pay a cancellation fee. The fee must be appropriate and justifiable. The contract can set standard fees based on how close to the start you cancel; if it does not, the fee is the package price minus what the organiser saves or earns by using the services elsewhere. You can ask the organiser to justify the fee.
The organiser must refund what you paid, minus any fee, within 14 days.
No fee: if unavoidable and extraordinary circumstances at or near your destination significantly affect the holiday or getting you there, you can cancel before it starts without a fee and get a full refund within 14 days. You are not entitled to extra compensation on top.
If you are not sure whether the problems at your destination count, ask the organiser in writing and the consumer helpline before you cancel.
Claiming on travel insurance is a separate matter: check your policy.
If something goes wrong on holiday
Tell the organiser without undue delay, and keep evidence such as photos and messages.
The organiser should put the problem right. If it refuses, or it needs putting right straight away, you can sort it out yourself and claim back the necessary costs.
If significant parts of the package cannot be provided as agreed, the organiser must offer suitable other arrangements at no extra cost.
If the problem substantially affects the holiday and the organiser does not put it right in a reasonable time, you can end the contract without a fee. If the package includes transport, the organiser must get you home without undue delay at no extra cost.
You are entitled to a fair price reduction for any time things were not as agreed, unless the problem was your own fault. You may also be owed compensation for any damage the problem caused you.
A price reduction may still be due, but there is no compensation if the organiser proves the problem was your own fault. The same applies if it proves the problem was caused by someone not connected with the holiday and could not be foreseen or avoided, or was due to unavoidable and extraordinary circumstances.
If you cannot get home as planned because of unavoidable and extraordinary circumstances, the organiser must pay for necessary accommodation, if possible of the same standard, normally for up to 3 nights per traveller. That limit does not apply to the people below, if the organiser was told of their needs at least 48 hours before the package started. They are disabled people and people with reduced mobility (and anyone travelling with them), pregnant women, children travelling alone, and people who need specific medical help.
If the travel company goes bust
All companies selling package holidays must have protection so you do not lose your money if they go bust. It also helps with practical problems if the company or your airline goes bust.
Package holidays with a flight: the company must hold an ATOL, run by the Civil Aviation Authority (CAA). If it goes bust before you travel, you get a refund. If you are already away, you can finish your holiday and fly home. Keep your ATOL certificate or the invoice showing ATOL protection, and take it with you.
Packages without a flight are protected in other ways, such as a bond, insurance or money held in trust.
If your airline goes bust while you are away on a package, the organiser must look after you at no extra cost. If it goes bust before you travel, the organiser must offer a replacement holiday or a refund.
ATOL is for package holidays and flights sold by tour operators. A flight you booked on its own direct with an airline is not normally ATOL protected: check with the CAA.
You can check whether a company holds an ATOL on the CAA website. You can use the free ATOL protection claim letter.
Paid by credit card: section 75
Section 75 of the Consumer Credit Act 1974 may let you claim from the card provider as well as the company if you paid by credit card and the cash price was more than £100 and not more than £30,000. Whether it covers your booking can depend on who you paid (for example a travel agent rather than the organiser): ask your card provider or the consumer helpline.
Paying by debit card does not give you section 75.
If the card provider turns your claim down, you can complain to it and then to the Financial Ombudsman Service. You can use the free section 75 letter.
If the company is a current ABTA member and you cannot agree, ABTA's dispute service can help. Stage 1 is free, is run by ABTA and can take up to 50 days. Stage 2 is arbitration by an independent company: you pay a registration fee, and the decision is final and binding. ABTA cannot help if the company is not a member.
Airlines are not ABTA members. For a delayed or cancelled flight, see our flight delay guide.
In England and Wales, before going to court, the court's rules on pre-action conduct expect a letter before claim: concise details of the claim, what you want and how you worked out any amount. The company should reply within a reasonable time: 14 days in a straightforward case.
If it still refuses, you can take it to court: see our small claims guide for your nation.
Deadlines
Price rise: the organiser must tell you at least 20 days before the package starts.
Refunds after a cancellation: within 14 days.
Problems on holiday: tell the organiser without undue delay.
Changes to your holiday: reply within the reasonable time the organiser gives you.
England, Wales and Northern Ireland: you have up to 6 years to take a package holiday claim to court. This guide does not cover exactly when the 6 years start or what can change them: ask the consumer helpline.
Scotland: the time limit
In Scotland you have up to 5 years to take a package holiday claim to court, not 6. This guide does not cover exactly when the 5 years start or what can change them: ask Advice Direct Scotland.
Money figures
Section 75: the cash price must be more than £100 and not more than £30,000.
This guide gives no other amounts. A refund is what you paid; fees, price reductions and compensation depend on the facts.
Where to go for help
Civil Aviation Authority (CAA): ATOL protection and checking whether a company holds an ATOL (caa.co.uk).
ABTA: its dispute service for complaints about current ABTA members (abta.com).
Advice Direct Scotland (consumer advice): 0808 164 6000
Consumerline (Northern Ireland): 0300 123 6262
The consumer helpline can pass your complaint to Trading Standards.
Citizens Advice (England): 0800 144 8848
Citizens Advice (Wales): 0800 702 2020
Citizens Advice Scotland: 0800 028 1456
Advice NI: 0800 915 4604
Traps
This guide is about holidays you book, not holiday pay or annual leave at work.
Complain to the organiser that sold you the package, not to the hotel or the airline.
Booking a flight and a hotel yourself, separately, from different companies is not usually a package.
If you cancel yourself you may have to pay a fee; if the company cancels, you get a full refund. Think before you cancel first.
A rise of 8% or less does not on its own let you cancel without a fee.
Paying by debit card does not give you section 75.
Keep your booking confirmation, ATOL certificate, receipts and photos.
Sources (checked 25 September 2026)
legislation.gov.uk: Package Travel and Linked Travel Arrangements Regulations 2018 (SI 2018/634), regulation 2(3) (linked travel arrangement: separate selection and payment on one visit or contact; or targeted procurement from another trader within 24 hours) and 2(5)(a)-(b)(i)-(iii) (package: two or more types of travel service for the same trip; one contract; single point of sale selected before paying; inclusive or total price; sold as a package). Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 regulation 10(2)-(4) (price increase only if the contract says so, solely for fuel or other power sources, third-party taxes or fees, or exchange rates; price reduction for decreases; notice with justification and calculation on a durable medium at the latest 20 days before the start of the package; over 8% = regulation 11(4)-(11)). Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 regulation 11(2)-(8) (no unilateral change unless allowed by the contract, insignificant and notified on a durable medium; significant alteration of main characteristics, special requirements not met or a rise of more than 8%: tell without undue delay, reasonable period, consequences of not responding, substitute package; accept or terminate without a termination fee; substitute package; price reduction for lower quality or cost; refund within 14 days). Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 regulation 12(2)-(8) (traveller may terminate before the start; appropriate and justifiable termination fee; standard fees; price minus cost savings and income from alternative deployment; justification on request; unavoidable and extraordinary circumstances at the destination or its immediate vicinity significantly affecting the package or carriage to the destination: no termination fee, full refund, no additional compensation). Revised version: no outstanding effects. Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 regulation 13(2)(b)-(3) (organiser may terminate with a full refund and no additional compensation where prevented by unavoidable and extraordinary circumstances and notifies without undue delay before the start; the minimum-number ground seen in Directive (EU) 2015/2302 article 12(3) on legislation.gov.uk) and regulation 14(2)-(3) (reimbursement minus termination fee; refunds under 12(8) and 13(3) without undue delay and not later than 14 days after termination). Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 regulation 15(2)-(7) and (11)-(15) (organiser liable for all travel services whoever performs them; inform without undue delay; traveller may remedy and claim necessary expenses if the organiser refuses or immediate remedy is needed; termination without fee where a lack of conformity substantially affects the package and is not remedied; repatriation at no extra cost; accommodation for up to 3 nights per traveller where return is prevented by unavoidable and extraordinary circumstances; limit does not apply to persons with reduced mobility and companions, pregnant women, unaccompanied minors and persons needing specific medical assistance notified 48 hours before the start), regulation 16(2)-(4) (price reduction unless attributable to the traveller; compensation without undue delay; no compensation if attributable to the traveller, an unconnected third party and unforeseeable or unavoidable, or unavoidable and extraordinary circumstances), and the Schedule standard information form (refund and compensation where appropriate if the organiser cancels; suitable alternative arrangements at no extra cost; contact through the retailer: regulation 17 heading). Checked 25 September 2026.
legislation.gov.uk: SI 2018/634 contents (regulations 19-24: insolvency protection for packages through bonding, insurance or monies in trust). Checked 25 September 2026.
legislation.gov.uk: Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026 (SI 2026/455), regulation 2(2) (omits the linked travel arrangement definitions in regulation 2(3)-(4); adds a new limb to the definition of package). Start date 6 April 2027 and no effect on contracts or linked travel arrangements concluded before then: LexisNexis practice note, Weightmans (Sep 2026), ABTA news 20 Aug 2026 and the UK Parliament procedure browser (business item dated 6 April 2027). Regulation 1 text not in search on 26 September 2026; the start date was confirmed again by LexisNexis and Weightmans (September 2026). Checked 26 September 2026.
nidirect: Your rights if an airline or travel company goes bust (ATOL run by the CAA for package holidays and charter flights sold by tour operators; refund, or finish the holiday and fly home; all package sellers must offer protection; ATOL invoice or certificate, keep it and take it with you; ATOL also protects flights sold with overseas accommodation or car hire as linked travel arrangements; airline failure abroad or before travel: tour operator looks after you or offers a replacement holiday or refund; check whether a tour operator holds an ATOL). Checked 25 September 2026.
Which? (Oct 2017, attributed): ATOL does not normally cover customers who only book a flight. Checked 25 September 2026.
abta.com: Resolving disputes (Stage 1 approved by Government, run by ABTA, up to 50 calendar days, no cost), Disputes we can and cannot help with (current ABTA members only; airlines are not members; two stages: informal resolution and arbitration), ABTA ADR scheme (arbitration only after deadlock; administered independently; registration fee; final and legally binding). Checked 25 September 2026.
GOV.UK: CMA warns package travel firms over refunds (13 May 2021) and the CMA open letter to package travel companies (May 2021, copy seen): full refund within 14 days, not only vouchers or refund credit notes. Open letter checked on GOV.UK 14 Oct 2026 (it has not been updated for the Digital Markets, Competition and Consumers Act 2024). Checked 25 September 2026.
legislation.gov.uk: Consumer Credit Act 1974, section 75(3)(b) (no claim for a single item with a cash price of £100 or less or more than £30,000). Checked 24 September 2026.
financial-ombudsman.org.uk: Common myths about Section 75 (point-of-sale loans, some store cards and catalogue accounts; not debit card or bank transfer; limits per item unless sold as a set; complaints about rejected claims). Checked 24 September 2026.
legislation.gov.uk: Limitation (Northern Ireland) Order 1989, article 4(a) (an action founded on simple contract may not be brought more than six years after the cause of action accrued). Checked 24 September 2026.
justice.gov.uk: Practice Direction - Pre-Action Conduct and Protocols, paragraph 6 (letter before claim; reply within a reasonable time, 14 days in a straightforward case). Checked 24 September 2026 (small claims guide).
GOV.UK: Consumer rights (gov.uk/consumer-protection-rights): Citizens Advice 0808 223 1133, Welsh language 0808 223 1144 (England and Wales); Advice Direct Scotland 0808 164 6000; Consumerline 0300 123 6262 (Northern Ireland). Checked 24 September 2026 (faulty goods guide).
General advice lines: Citizens Advice (England) 0800 144 8848, Citizens Advice (Wales) 0800 702 2020, Citizens Advice Scotland 0800 028 1456, Advice NI 0800 915 4604, as in our small claims guides (checked 24 September 2026).
legislation.gov.uk: Limitation Act 1980, section 2 (tort) and section 5 (simple contract): 6 years from the date the cause of action accrued.
Prescription and Limitation (Scotland) Act 1973, section 6(1) (obligation extinguished after 5 years without a relevant claim or relevant acknowledgment), as quoted by the Court of Session (BAILII); legislation.gov.uk section 10 (up to date to 6 February 2026, text not read).
Important disclaimer: This guide covers refunds and other rights for package holidays under the Package Travel and Linked Travel Arrangements Regulations 2018, for travellers in England, Wales, Scotland and Northern Ireland as at 25 September 2026. General legal information only, not legal advice. ukworkrights.co.uk, Not a law firm.