Can I cancel a package holiday and get a refund?
Sometimes for free — it depends why you're cancelling. A package (for example flight plus hotel booked together) is covered by the Package Travel and Linked Travel Arrangements Regulations 2018. You can cancel for a full refund with no fee if the organiser raises the price by more than 8%, makes a significant change to the main arrangements, or cancels the trip — and also if unavoidable and extraordinary circumstances at the destination seriously affect the holiday. Any refund on termination must be paid within 14 days. But if you simply change your mind, the organiser can charge a reasonable cancellation fee. If the company goes bust, ATOL (via the CAA) protects flight-inclusive packages. In short: a full refund in defined situations, otherwise a fair cancellation charge.
📋 The rules
- A 'package' = e.g. flight + hotel booked together
- Price rise over 8% → cancel for a full refund
- A significant change or organiser cancellation → full refund
- Refunds due within 14 days
- Just changing your mind → a reasonable cancellation fee
🔓 Exceptions
- Price rises need a contract clause, clear calculation, 20 days' notice
- ATOL covers flight-inclusive packages if the firm fails — not airline-direct flights
- Extraordinary circumstances must significantly affect the trip or transport
⚠️ Penalties & fines
These are protections, not penalties. The key triggers for a fee-free full refund are an 8% price rise, a significant change, organiser cancellation, or extraordinary circumstances; refunds must be paid within 14 days (Regulation 14). A permitted price increase is only valid if the contract allows it, comes with a clear calculation, and is given at least 20 days before departure. ATOL protection (run by the CAA) covers flight-inclusive packages if the operator becomes insolvent, but not airline-direct flight-only bookings. In June 2025 the CMA warned package firms to comply; under the DMCC Act 2024 it can fine up to 10% of global turnover. Beware a myth: "I can cancel my package holiday any time and get all my money back" is false — a full refund only arises in those defined situations; otherwise a reasonable cancellation charge applies. To cancel well: check the reason against the regulations, and claim via ATOL or your card provider if the firm fails.
📎 Official sources
- Package Travel Regulations 2018 — Regulation 14 →
- GOV.UK — package travel framework: 2025 consultation response →
- CAA — consumer travel advice →
❓ Frequently asked
Can I cancel a package holiday and get my money back?
It depends on the reason. You're entitled to a full refund with no cancellation fee if the organiser increases the price by more than 8%, makes a significant change to your holiday, cancels it, or if unavoidable and extraordinary circumstances at the destination seriously affect the trip. If you simply change your mind, a reasonable cancellation charge applies.
What counts as a significant change?
A significant change is an alteration to the main characteristics of your holiday — for example a major change to flight times, a downgrade in accommodation, or a change of resort. When that happens, the organiser must let you accept it, take an alternative if offered, or cancel and receive a full refund of what you've paid.
How quickly should I be refunded?
Under Regulation 14 of the Package Travel Regulations 2018, where the contract is terminated and you're entitled to a refund, the organiser must repay you within 14 days. This applies whether the organiser cancelled, you cancelled because of a price rise over 8%, or extraordinary circumstances justified ending the contract.
Am I protected if the travel company goes bust?
If you booked a flight-inclusive package, ATOL protection, run by the Civil Aviation Authority, means you can get a refund or be brought home if the operator becomes insolvent. ATOL doesn't cover flights you book directly with an airline, so for those, separate travel insurance or paying by credit card is worth considering.
Can the organiser increase the price after I book?
Only if your contract specifically allows price changes, the increase is properly calculated and you're told at least 20 days before departure. Even then, increases are limited to certain costs like fuel or taxes. If the rise is more than 8% of the package price, you have the right to cancel and get a full refund instead.
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