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 advice about your specific situation
Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.
Talk to Ash — it's freeNo sign-up · No account · Works for England, Scotland, Wales & Northern Ireland