Package Holiday Rights: Cancellations, Changes and Compensation Under the Package Travel Regulations 2018 (UK)

A package holiday is protected by a specific set of rules that go further than ordinary consumer contract law. The Package Travel and Linked Travel Arrangements Regulations 2018 are marked on legislation.gov.uk as applying across the United Kingdom, so the rights described here are not limited to England and Wales, although court and enforcement routes differ between the UK nations. This guide summarises what the Regulations say about cancellations, changes, problems during the trip and compensation.

Which bookings the Regulations cover

Regulation 3 applies to packages offered for sale or sold by traders to travellers, and to linked travel arrangements, concluded on or after the commencement date. It excludes packages covering less than 24 hours unless overnight accommodation is included, packages offered occasionally on a not-for-profit basis to a limited group, and packages bought under a general agreement between a trader and a person booking for their trade, business or profession. A stand-alone flight or hotel booking is not a package or a linked travel arrangement, so these rules are not the source of rights for it.

Changes the organiser makes before departure

Under regulation 11 the organiser cannot unilaterally change the contract terms, other than price under regulation 10, unless the contract allows it, the change is insignificant, and the traveller is told clearly on a durable medium. Where the organiser must significantly alter a main characteristic of the travel services, cannot meet a special requirement, or proposes to raise the price by more than 8%, the traveller can accept the change or terminate without paying a termination fee. If the traveller ends the contract and does not take a substitute package, the organiser must refund all payments without undue delay and in any event within 14 days.

Cancelling your own booking

Regulation 12 lets a traveller terminate at any time before the start of the package. The organiser may charge an appropriate and justifiable termination fee, and must explain the amount if asked. If unavoidable and extraordinary circumstances at the destination or its immediate vicinity significantly affect the package or the carriage of passengers there, the traveller can terminate without a fee and is entitled to a full refund, although not additional compensation. Refunds after termination must be made within 14 days under regulation 14.

When the organiser cancels

Regulation 13 allows the organiser to terminate with a full refund if too few people have booked, provided notice is given no later than 20 days before the start for trips of more than six days, 7 days for trips of two to six days and 48 hours for shorter ones, or if unavoidable and extraordinary circumstances prevent performance. In those cases the organiser is not liable for additional compensation.

Problems during the holiday

Regulation 15 makes the organiser liable for performance of the travel services, whoever provides them. The traveller must tell the organiser about any lack of conformity without undue delay. The organiser must fix it within a reasonable period the traveller sets unless that is impossible or disproportionately costly. If the organiser refuses, or immediate remedy is needed, the traveller can arrange a fix and claim the necessary expenses without waiting. Where a significant proportion of services cannot be provided, the organiser must offer suitable alternatives at no extra cost, and if they are of lower quality, an appropriate price reduction. The traveller may refuse alternatives only if they are not comparable or the price reduction is inadequate. Where a lack of conformity substantially affects the package and is not fixed in time, the traveller can terminate without a fee and claim a price reduction, compensation or both.

Price reduction and compensation

Regulation 16 requires an appropriate price reduction for any period of lack of conformity unless the organiser proves the traveller caused it, and appropriate compensation for damage suffered. Compensation is not due where the organiser proves the problem was attributable to the traveller, to an unforeseeable or unavoidable third party unconnected with the services, or to unavoidable and extraordinary circumstances. Outside international-convention limits, a contract may cap compensation only if the cap does not apply to personal injury or to damage caused intentionally or negligently and is not below three times the total price.

Related routes

If a package was paid for by credit card, see our guide to Section 75 and chargeback. Goods and services claims outside packages are covered in our Consumer Rights Act guide.

FAQs

How quickly must a refund be paid?

Regulations 11 and 14 require refunds after termination without undue delay and in any event within 14 days.

Can the organiser raise the price after booking?

A proposed price increase of more than 8% triggers the right under regulation 11 to accept the change or to terminate without a termination fee.

Do I have to complain during the holiday?

Regulation 15(3) says the traveller must tell the organiser about a perceived lack of conformity without undue delay.

Are flight-only bookings covered?

Regulation 3 covers packages and linked travel arrangements, so a stand-alone booking is outside these rules.

The bottom line

Package travel bookings carry statutory rights to refunds, alternative arrangements, price reductions and compensation that depend on the organiser rather than on the individual hotel or airline. Refunds after termination are due within 14 days, and problems should be reported to the organiser promptly. Exceptions such as unavoidable and extraordinary circumstances can remove the right to compensation. This is general information, not legal advice on a specific booking.