Package Holiday Rights: What You're Entitled to When Things Go Wrong
The Package Travel and Linked Travel Arrangements Regulations 2018 give strong protections to people who book package holidays. A 'package' is any combination of at least two travel services (e.g. flights + hotel, or flights + car hire) booked through the same trader. This guide explains your rights around price increases, cancellations, significant changes, and financial protection.
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What counts as a package holiday?
A "package" under the Package Travel Regulations exists when you buy:
- ✓At least two of: transport, accommodation, car rental, or other tourist services (e.g. tours, excursions)
- ✓Combined into a single contract or sold together at an inclusive price
- ✓Or two separate contracts where one trader facilitates the booking of both (a 'linked travel arrangement')
- ✓Through a single payment (or separately but linked at point of sale)
Price increases, when can the organiser increase the price?
Organisers can only increase the price after booking in limited circumstances:
- ✓Only if the contract allows it (increases in fuel costs, taxes, or exchange rates)
- ✓No price increase is allowed within 20 days of departure
- ✓If the price increase is more than 8%: you can accept it, accept a substitute holiday, or cancel with a full refund
- ✓Price decreases must be passed on to you (minus administrative costs)
Significant changes to your holiday
If the organiser makes a "significant change" to your package before departure, you have strong rights:
- ✓Examples of significant changes: different destination, major downgrade in accommodation, substantially different departure time
- ✓You can accept the changed package, transfer to an alternative package, or cancel for a full refund
- ✓If you cancel due to a significant change, the organiser must refund within 14 days
- ✓You may also be entitled to compensation depending on circumstances
Cancellation, by the organiser
If the organiser cancels your holiday (not you), you're entitled to:
- ✓A full refund within 14 days, OR
- ✓A substitute holiday of equivalent or higher quality
- ✓Compensation on top of the refund, unless the cancellation was due to 'unavoidable and extraordinary circumstances' (e.g. natural disaster, pandemic travel bans)
- ✓Compensation amounts are typically calculated by reference to the ABTA compensation scale
Cancellation, by you
If you want to cancel, the organiser can charge a termination fee based on how far in advance you cancel. However:
- ✓If you cancel due to unavoidable and extraordinary circumstances at the destination (e.g. a war breaking out, a hurricane), you can cancel with a full refund, no termination fee
- ✓The termination fee must be reasonable and justified, it cannot be a penalty clause
- ✓Check your travel insurance, 'cancel for any reason' policies may cover circumstances not covered by the regulations
ATOL protection, if your company goes bust
ATOL (Air Travel Organiser's Licence) protection means that if your UK-based tour operator or travel company fails financially, you can:
- ✓Get a full refund if you haven't departed yet
- ✓Be brought home at no extra cost if you're already abroad
- ✓ATOL is administered by the Civil Aviation Authority (CAA)
- ✓When you book, you should receive an ATOL Certificate, keep it
- ✓Not all travel companies are ATOL-protected, check before booking
Problems during your holiday
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
What counts as a package holiday?
A package holiday is a pre-arranged combination of at least two of: transport, accommodation, and other tourist services (like car hire or excursions) sold together for an inclusive price. The Package Travel and Linked Travel Arrangements Regulations 2018 (PTR) apply to most holidays booked through travel agents and tour operators.
What are my rights if my package holiday is cancelled?
If the organiser cancels your package holiday, you are entitled to a full refund within 14 days. You may also be entitled to compensation unless the cancellation was due to unavoidable and extraordinary circumstances (such as a natural disaster at the destination). Compensation is set at a percentage of the holiday price based on how close to departure the cancellation occurs.
What is ATOL protection?
ATOL (Air Travel Organiser's Licence) protects you if a travel company fails and you have booked a flight-inclusive package. If the company collapses before you travel, you will receive a full refund. If you are already abroad, you will be brought home at no extra cost. Always check your confirmation includes an ATOL certificate.
Can a tour operator increase the price after I have booked?
Under PTR 2018, tour operators can only increase prices in limited circumstances (e.g. fuel costs, exchange rate changes) and only if explicitly allowed in the contract. Any increase above 8% of the total holiday price entitles you to cancel and receive a full refund. Price increases are not permitted within 20 days of departure.
What can I claim if my package holiday was a disaster?
You can claim compensation if the holiday was significantly different from what was described, or if any element was provided negligently or not at all. Claims can include: cost of alternative arrangements, additional expenses incurred, loss of enjoyment (up to a limit), and distress and inconvenience. The organiser is responsible even if a local supplier caused the problem.
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