Can I cancel a package holiday and get a refund?
Yes, you can always cancel — but it is free only in certain cases. The package holiday is governed by Directive (EU) 2015/2302, transposed in Luxembourg by the law of 25 April 2018 into the Consumer Code. Before departure you are free to cancel at any time, but the organiser may keep appropriate cancellation fees, often rising as the date approaches. There is, however, a free exit: where unavoidable and extraordinary circumstances at the destination (war, disaster, epidemic) significantly affect the trip, you cancel with no fee and are refunded. The refund must come within 14 days. If it is the organiser who cancels or raises the price by more than 8%, you get everything back. The myth: "a package is lost money if I cancel" — false; you can cancel, you pay reasonable fees, and sometimes nothing at all.
📋 The rules
- Legal framework: package holidays are governed by the law of 25 April 2018 (Consumer Code), transposing EU Directive 2015/2302.
- Free cancellation with fees: before departure you may cancel at any time, subject to appropriate cancellation fees that rise as the date nears.
- Extraordinary circumstances: where unavoidable and extraordinary circumstances hit the destination, cancellation is free and the refund is full.
- Refund within 14 days: the sums paid must be returned to you within a maximum of 14 days after cancellation.
- Organiser cancels or raises price: if the organiser cancels, changes an essential element or raises the price by more than 8%, you may withdraw and be fully refunded.
🔓 Exceptions
- Insolvency protection: if the organiser goes bankrupt, a compulsory guarantee ensures your refund and, if needed, your repatriation.
- Flight or single booking only: a bare plane ticket or a single hotel night is not a package and follows its own, often less protective, terms.
- Case-by-case assessment: whether an event is "unavoidable and extraordinary" is judged concretely; a mere change of mind or poor weather is not enough.
⚠️ Penalties & fines
Here the "cost" plays out mainly on the cancellation fees. Cancelling for personal convenience loses you fees that grow the later you act — sometimes almost the whole price a few days before departure. Conversely, wrongly invoking extraordinary circumstances that are not met risks a refusal to refund and a dispute. On the agency's side, failing to refund within 14 days, keeping abusive fees or ignoring a legitimate cancellation breaches the Consumer Code and may bring penalties and damages. If the organiser goes bankrupt without valid cover, the traveller risks losing everything — hence the importance of checking the financial guarantee before paying. For a cross-border dispute, the European Consumer Centre (ECC Luxembourg) can help you assert your rights free of charge.
📎 Official sources
- Guichet.lu · concluding and cancelling a package holiday →
- Legilux · law of 25 April 2018 (package travel, Consumer Code) →
- European Consumer Centre (ECC Luxembourg) · travel →
❓ Frequently asked
Can I cancel my package just because I changed my mind?
Yes, you can cancel at any time before departure, even without a particular reason. But in that case the organiser may keep cancellation fees, usually the higher the closer the cancellation is to the departure date.
In which cases is cancellation free?
Cancellation is free where unavoidable and extraordinary circumstances arise at the destination or nearby, with significant consequences for the trip. This may be a war, a natural disaster or an epidemic; you are then refunded in full.
Within what time must I be refunded?
The organiser must refund the sums paid within a maximum of 14 days after the contract is cancelled. This deadline applies both when you cancel for extraordinary circumstances and when it is the organiser who ends the trip.
What happens if the travel agency goes bankrupt?
Package sellers must take out an insolvency guarantee that protects the money you have paid. This guarantee ensures your refund and, if you are already there, your repatriation to Luxembourg.
Is a single plane ticket a package holiday?
No, a flight alone or a single hotel night booked on its own is not a package within the meaning of the law. The stronger protection, notably the 14-day refund, requires combining at least two services sold together.
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