Package Holiday Rights UK: Cancellations, Refunds & ATOL

A package is a combination of at least two different types of travel service for the purpose of the same trip or holiday, if the services are put together in one of these ways:

• ✓Yes: Combined by one trader, including at your request or in accordance with your selection, before a single contract on all services is concluded
• ✓Yes: Purchased from a single point of sale and selected before you agree to pay
• ✓Yes: Offered, sold or charged at an inclusive or total price
• ✓Yes: Advertised or sold under the term package or a similar term
• ✓Yes: Combined after a contract by which a trader entitles you to choose among a selection of different types of travel services
• ✓Yes: Purchased from separate traders through linked online booking processes, where your name, payment details and e-mail address are transmitted to the other trader and a contract with that trader is concluded at the latest 24 hours after the first booking is confirmed

The types of travel service are the carriage of passengers, accommodation that is not intrinsically part of the carriage and is not for residential purposes, the rental of cars, other motor vehicles or certain motorcycles, and any other tourist service not intrinsically part of those.

Not a package, or outside the Regulations:

• ✗No: One type of travel service combined only with tourist services that do not account for a significant proportion of the value and are not advertised as an essential feature of the combination
• ✗No: Packages and linked travel arrangements covering a period of less than 24 hours, unless overnight accommodation is included
• ✗No: Packages and linked travel arrangements offered occasionally on a not-for-profit basis for a limited group of travellers
• ✗No: Packages and linked travel arrangements purchased on the basis of a general agreement between a trader and another person acting for a trade, business, craft or profession, for booking travel arrangements in connection with that trade, business, craft or profession

The prices in a package travel contract must not be increased once the contract is concluded unless the contract states expressly that an increase may be made, says increases are to be made solely to allow for direct consequences of changes in the cost of carriage from fuel or other power sources, in taxes or fees imposed by third parties, and in the relevant exchange rates, gives you a right to a price reduction for corresponding decreases, and says how the revisions are to be calculated.

• ✓Yes: Any increase, whatever its size, can only be made if the organiser notifies you clearly and comprehensibly, with a justification and a calculation, on a durable medium, at the latest 20 days before the start of the package
• ✓Yes: If the increase is more than 8% of the total price, you may within a reasonable period specified by the organiser accept the changes or terminate the contract without paying a termination fee, and you may accept a substitute package if one is offered
• ✓Yes: If you terminate and do not accept a substitute package, the organiser must refund all payments without undue delay and in any event not later than 14 days after the contract is terminated
• ✓Yes: If costs fall and you have a right to a price reduction, the organiser may deduct administrative expenses from any refund and must, at your request, provide proof of them

The organiser must not unilaterally change the terms of the contract before the start of the package, other than the price, unless the contract allows it, the change is insignificant, and the organiser informs you in a clear, comprehensible and prominent manner on a durable medium.

The significant change rules apply where, before the start of the package, the organiser is constrained by circumstances beyond its control to alter significantly any of the main characteristics of the travel services, cannot fulfil your special requirements, or proposes to increase the price by more than 8%. The main characteristics include the travel destination, the itinerary and periods of stay, the means, characteristics and categories of transport, the location, main features and tourist category of the accommodation, and the meals included.

The organiser must, without undue delay, tell you clearly on a durable medium about the proposed changes and their impact on the price, a reasonable period within which you must decide, the consequences of failing to respond, and any substitute package of equivalent or higher quality, if possible, and its price.

• ✓Yes: Accept the proposed changes, or terminate the contract without paying a termination fee, within the reasonable period the organiser specifies
• ✓Yes: Accept a substitute package, where the organiser offers one
• ✓Yes: An appropriate price reduction if the changes or the substitute package result in a package of lower quality or cost
• ✓Yes: A refund of all payments without undue delay and in any event not later than 14 days after the contract is terminated, if you terminate and do not accept a substitute package

The organiser may terminate the contract and give you a full refund if:

• ✓Yes: The number of people enrolled is smaller than the minimum number stated in the contract and it notifies you within the period fixed in the contract but not later than 20 days before the start for trips lasting more than 6 days, 7 days before for trips lasting between 2 and 6 days, or 48 hours before for trips lasting less than 2 days
• ✓Yes: It is prevented from performing the contract because of unavoidable and extraordinary circumstances and notifies you without undue delay before the start of the package

In those cases the organiser is not liable for additional compensation. The refund must be made without undue delay and in any event not later than 14 days after the contract is terminated.

You may terminate the package travel contract at any time before the start of the package, but you may be required to pay an appropriate and justifiable termination fee to the organiser.

• ✓Yes: The contract may specify reasonable standard termination fees based on the time of termination before the start of the package and the expected cost savings and income from alternative deployment of the travel services
• ✓Yes: Without standardised fees, the fee must correspond to the price of the package minus the cost savings and income from alternative deployment of the travel services
• ✓Yes: The organiser must provide a justification for the amount of the fee if you ask
• ✓Yes: If unavoidable and extraordinary circumstances occur at the place of destination or its immediate vicinity and significantly affect the performance of the package or the carriage of passengers to the destination, you may terminate before the start of the package without paying any termination fee

Not available if you terminate for circumstances at the destination:

• ✗No: Additional compensation: you are entitled to a full refund of any payments made for the package but not to additional compensation

After you terminate, the organiser must reimburse your payments, less any termination fee, without undue delay and in any event not later than 14 days after the contract is terminated.

ATOL (Air Travel Organisers' Licensing) is financial protection when you book a package trip that includes a flight, and it is not travel insurance. The scheme is run by the UK Civil Aviation Authority, and when you purchase an ATOL protected trip which includes a flight you should be given an ATOL Certificate.

• ✓Yes: A full refund if you have not already travelled, or being brought home free of charge if you are abroad at the time of insolvency
• ✓Yes: Help to continue your trip if your travel company fails while you are abroad: assisting you to stay in your accommodation if possible, reimbursing money you spent replacing ATOL protected parts of your trip, and arranging flights home depending on the circumstances
• ✓Yes: An ATOL Certificate, which you will be given as soon as you pay any money for the trip, even a deposit, as proof the trip is protected

ATOL does not cover:

• ✗No: Cancellations, complaints, sickness, injury or substandard hygiene during your holiday
• ✗No: Accommodation-only bookings, which do not include a flight
• ✗No: A flight for which you receive a valid e-ticket in exchange for payment
• ✗No: A voucher you accept instead of a refund

• ✓Yes: If the organiser cannot provide a significant proportion of the services agreed, it must offer, at no extra cost, suitable alternative arrangements of, where possible, equivalent or higher quality, and give an appropriate price reduction if they are of lower quality
• ✓Yes: You may reject the alternative arrangements only if they are not comparable to what was agreed or the price reduction is inadequate
• ✓Yes: If you are in difficulty, the organiser must give appropriate assistance without undue delay, such as information on health services, local authorities and consular assistance, and help to find alternative travel arrangements
• ✓Yes: If the organiser cannot ensure your return as agreed because of unavoidable and extraordinary circumstances, it must bear the cost of necessary accommodation, if possible of equivalent category, for a period not exceeding 3 nights per traveller, or a different period specified in the passenger rights legislation for that transport