Package Holiday Rights UK: Refunds, Changes and ATOL

If you book a flight and hotel together as one package and the company cancels it, you are entitled to a full refund within 14 days. This guide explains what counts as a package, your refund and change rights, and how ATOL protects you if the operator fails.

What Counts as a Package Holiday

Under the Package Travel and Linked Travel Arrangements Regulations 2018, a "package" is generally a pre-arranged combination of at least two different types of travel service, such as a flight plus a hotel, or a flight plus car hire, for the same trip. The combination is a package if any one of these applies:

• one trader combines the services, including at your request, before a single contract for all of them is made;
• you buy them from a single point of sale and choose them before you agree to pay;
• they are offered, sold or charged at an inclusive or total price;
• they are advertised or sold as a "package" or under a similar term;
• they are combined after you buy a contract that lets you choose from a selection of travel services, such as a gift box; or
• you book them from separate traders through linked online booking processes, where the first trader passes your name, payment details and email address to the second and you book with the second within 24 hours of the first booking being confirmed.

This applies even if you end up with separate contracts with each travel provider.

This matters because a package carries a much stronger set of legal rights than booking the same trip piece by piece yourself. If you book a flight from one website and a hotel from another yourself, without the first site passing your details on to the second, that is not a package under these regulations, even if you are travelling on the same dates (see below).

Cancellation and Refund Rights (Regulation 14)

If the organiser cancels your package (Regulation 13) before you depart, you are entitled to a full refund within 14 days of the cancellation, under Regulation 14(3) of the 2018 Regulations. Regulation 13 allows the organiser to cancel without paying you additional compensation only if too few people have booked (and it tells you within set deadlines before departure) or if unavoidable and extraordinary circumstances prevent the trip. If it cancels for any other reason, you may be able to claim compensation on top of getting your money back. You deal with the organiser you booked the package with, not each individual airline, hotel or supplier separately, because the organiser is responsible for the performance of the whole package.

The 14-day refund clock runs from when the organiser cancels, not from when you first ask for your money back, so if a refund has not arrived within 14 days of the cancellation, that is a clear breach you can escalate (see how to complain about a company).

You can also cancel the package yourself before departure, without paying any cancellation fee, if unavoidable and extraordinary circumstances at or near your destination significantly affect the holiday or getting there (Regulation 12(7)). You are then due a full refund, again within 14 days.

Significant Changes Before You Leave (Regulation 11)

Sometimes an organiser does not cancel outright but wants to make a significant change before you travel, for example a major change to your flight times, a change of destination, or a price increase. Under Regulation 11, if the organiser proposes a significant change, you generally have three options:

• Accept the change as offered.
• Take a suitable alternative package, if the organiser offers one, of equivalent or higher quality where possible.
• Cancel the package for a full refund, with no cancellation fee, because the significant change was not something you agreed to when you booked.

A price increase of more than 8% of the total package price is treated as a significant change in its own right, giving you the same right to accept, take an alternative, or cancel for a full refund, rather than simply having to pay the extra amount or lose your booking.

ATOL Protection If Your Holiday Company Fails

Most flight-inclusive package holidays sold in the UK must be protected under the ATOL scheme (Air Travel Organisers' Licensing), administered by the Civil Aviation Authority (CAA). ATOL protection means that if the company you booked with stops trading, you are either refunded, or, if you have already left, able to complete your trip and get home at no extra cost.

You should be given an ATOL certificate as soon as you pay any amount towards an ATOL-protected trip. It sets out which parts of your holiday are financially protected and which ATOL holder is responsible for that protection. Always check that a package including a flight is ATOL protected, and keep the certificate somewhere safe until you return.

DIY Bookings Are Not a Package

If you book your flight and your hotel yourself, separately, from two different websites or providers, and neither passes your booking details to the other, you have not bought a package under these regulations, even though you end up with the same trip. Each booking is a separate contract with a separate supplier, and if one part goes wrong, for example your flight is cancelled, that does not automatically entitle you to anything from your hotel, and vice versa. You do not get the organiser's single point of responsibility, the Regulation 11 significant-change rights, or the Regulation 14 refund duty that come with a genuine package.

In between sits the "linked travel arrangement". This is where a trader lets you choose and pay for each service separately in a single visit or contact, or points you to another trader in a targeted way and you book with that trader within 24 hours. It is not a package, but the trader that set it up must have insolvency protection for the payments it receives from you.

This is a real trade-off, not just a technicality: a self-arranged (DIY) trip can sometimes be cheaper, but it carries meaningfully weaker consumer protection than booking the same combination as a package with one organiser.

Paying by Card Gives You a Second Route

However you paid, your rights against the organiser under the Package Travel Regulations stand on their own. But if you paid all or part of the price on a credit card, you may also have a claim directly against the card issuer under section 75 of the Consumer Credit Act 1974 (see section 75 claims). Both debit and credit card payments may also be eligible for chargeback, a card-scheme process your bank can use to try to reverse the payment (see chargeback). These are separate, additional routes on top of your package travel rights, not a replacement for them.

The Package Travel Reform for Bookings From 6 April 2027

The Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026 were made on 22 April 2026 and apply to bookings made on or after 6 April 2027. For those bookings, an airline, hotel or other supplier that cancels or fails to provide a service that is part of a package must refund the organiser within 14 days. The separate linked travel arrangement category is abolished, and the package definition is widened: services you choose and pay for separately during a single visit to, or contact with, one trader's shop, website or phone line will count as a package.

The reform does not change your 14-day refund right as a consumer if your package is cancelled, and it does not weaken your Regulation 11 rights on a significant change. Bookings made before 6 April 2027 stay under the rules described above.

Related Reading

If your holiday involves a flight that is delayed or cancelled on its own, rather than the whole package, see flight delay compensation for how UK261 works. For your general rights when buying goods and services, see the Consumer Rights Act 2015. For the wider picture, see the UK Consumer Rights hub and the United Kingdom hub.

If it is just the flight rather than the whole package, the UK flight delay compensation checker checks whether it is covered by the UK rules and how much compensation they give, £220, £350, £260 or £520 per passenger, and how to claim directly for free.

This article is general information about package holiday rights in the United Kingdom, not legal advice, and does not cover every possible dispute, such as claims for distress or inconvenience beyond a refund. For free, independent guidance on a specific problem, contact the Citizens Advice consumer service on 0808 223 1133 in England and Wales, Advice Direct Scotland on 0808 164 6000, or Consumerline on 0300 123 6262 in Northern Ireland. For the wider picture, see the UK Consumer Rights hub and the United Kingdom hub.

Frequently Asked Questions

What counts as a package holiday?

Under the Package Travel and Linked Travel Arrangements Regulations 2018, it is a combination of at least two different types of travel service for the same trip, such as a flight and a hotel, or a flight and car hire, where one trader combines them, you buy them from one point of sale, they are sold at a total price or as a package, or you book them through linked websites that pass on your details and you book the second service within 24 hours.

What happens if my holiday company cancels my package before I go?

You are entitled to a full refund within 14 days of the cancellation, under Regulation 14(3) of the 2018 Regulations. The organiser is responsible for refunding you, not each individual supplier.

What is a 'significant change' and what can I do about it?

A significant change is a major alteration before departure, such as a big change to timings or destination, or a price increase of more than 8%. You can accept the change, take a suitable alternative package if one is offered, or cancel for a full refund.

Can my price go up after I've booked a package holiday?

An increase of more than 8% of the total price is treated as a significant change, which gives you the right to accept it, take an alternative, or cancel for a full refund instead of paying the increase.

What does ATOL protection actually cover?

ATOL, administered by the Civil Aviation Authority, protects most flight-inclusive package holidays so that if the company you booked with stops trading, you get your money back, or, if you're already away, you can complete your trip and get home at no extra cost.

Is booking a flight and a hotel separately the same as booking a package?

No. Booking a flight and a hotel yourself from separate providers, where neither passes your booking details to the other, is not a package under these regulations, even for the same trip, and does not carry the same refund and significant-change protections.

Can I also get money back through my credit card if my package holiday goes wrong?

If you paid by credit card, section 75 of the Consumer Credit Act 1974 may give you a claim against the card issuer, and both debit and credit card payments may be eligible for chargeback. These sit alongside your package travel rights, not instead of them.