Package holidays: when you get your money back

A package holiday is protected by its own law — the Package Travel Regulations 2018. A 'package' is when you buy at least two travel services for the same trip together from one seller (say a flight plus a hotel). It carries more rights than a single ticket bought on its own.

If the organiser cancels

If the organiser cancels the trip, you are entitled to get all your money back. The refund must be made without undue delay and no later than 14 days after the contract ends (reg 14).

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If you cancel

You can cancel before the trip starts at any time, but the organiser may charge a reasonable, justifiable termination fee (reg 12). On request it must explain how the fee is worked out.

Special rule: if unavoidable and extraordinary circumstances at or near the destination significantly affect the trip or the carriage of passengers there, you can cancel with no termination fee and get all your payments back. The law does not give extra compensation in that case.

If the travel firm goes bust

The organiser must have insolvency protection (reg 19): it covers refunds of money already paid and, if the trip has started, getting you home. If the package includes a flight, protection is usually provided through the ATOL scheme, with an ATOL certificate. Keep your booking confirmation and certificate.

What it does NOT cover

These rules are about packages. A separately bought flight or hotel is protected differently. 'Reasonable termination fee' means you may not get everything back if you cancel for personal reasons. Travel insurance, not this law, covers non-refundable personal costs.

Source: regulation 14 and regulation 12 of the Package Travel Regulations 2018. Checked 25 October 2026.