What counts as a package holiday?

Broadly, a package is a combination of at least two different types of travel service bought together for the same trip — for example a flight plus a hotel, or accommodation plus car hire, or transport plus a significant tourist service such as a ski pass or a guided tour. It has to cover at least 24 hours or include overnight accommodation. It does not matter whether it was a ready-made deal in a brochure or a tailor-made trip you built with an agent — both can be packages. It also does not have to be a beach holiday: a city break, a ski trip or a backpacking route can all be packages. If it is a package, your travel company must tell you so, and you should be given the standard information about your rights under the Package Travel and Linked Travel Arrangements Regulations 2018. Booking the same components separately from different traders in your own time is not a package, and gives you far weaker protection.

Why does a package give me stronger rights?

Because the organiser becomes responsible for the whole holiday. If the hotel is not what was sold, the transfer never arrives, or a service in the package is not provided properly, you complain to the organiser — not to a hotel in another country in another language. That is 'legal protection'. On top of that a package has 'financial protection': if the organiser goes out of business you are entitled to your money back if you have not travelled, and to be brought home if you are abroad. Book a flight from one website and a hotel from another and neither of those protections exists — each trader is only responsible for its own bit, and there is no insolvency safety net across the trip.

What is ATOL protection, and how is it different from ABTA?

ATOL — the Air Travel Organiser's Licence — is the financial protection scheme run by the UK Civil Aviation Authority (CAA) for package holidays and flight-inclusive trips sold in the UK. If your package includes a flight, you should be given an ATOL Certificate when you pay. If the ATOL holder fails, the CAA refunds you if you have not travelled, and if you are already abroad it helps you stay in your accommodation and arranges flights home. ATOL claims must be made within 12 months of the failure. ATOL only bites when the company stops trading — it is not a scheme for delayed or cancelled flights. Packages that do not include a flight are protected differently, commonly through ABTA's scheme. A flight-only booking direct with an airline is generally not ATOL protected at all.

The travel company has gone bust. How do I get my money back?

Take the routes in order. First: if the package included a flight, it should be ATOL protected — claim through the CAA. If you have not travelled, you claim a refund; if you are abroad, the CAA's priority is helping you complete your stay and get home, so contact them before you buy replacement flights. ATOL claims must be made within 12 months of the failure. Second: if the package did not include a flight, check for ABTA or another insolvency-protection arrangement named on your confirmation — that confirmation should tell you how your money is protected. Third: if you paid on a credit card and the cash price was over £100, Section 75 of the Consumer Credit Act makes the card provider jointly liable, so you can claim from them. Paid by debit card? Ask your bank for a chargeback. Fourth: travel insurance may cover end-supplier failure. Do not pay a claims firm to do any of this — every one of these routes is free.

Package holiday problems — your rights when it goes wrong

Q: The holiday was nothing like the description — what can I claim?

Under the Package Travel and Linked Travel Arrangements Regulations 2018 the organiser must put right services that are not provided as agreed. If they cannot, or they do not, you may be entitled to a price reduction for the part of the holiday that fell short, and to compensation for the damage you suffered — which can include loss of enjoyment. There is no fixed tariff and we will not invent one: what you get depends on how serious the shortfall was, how much of the holiday it spoiled and what you can prove. That makes evidence the whole game: complain in resort AND in writing, get the rep or hotel to acknowledge the problem, take dated photos and video, keep receipts for anything you had to pay to fix it, and note the dates and times. If the organiser refuses, escalate to their ADR scheme (such as ABTA's or AITO's) and then, if necessary, to the small claims court.

What counts as a package — and why it matters so much

Under the Regulations, a package is broadly a combination of at least two different types of travel service bought together for the same trip, where the trip covers at least 24 hours or includes overnight accommodation. The travel services are: transport (a flight, a coach, a train — but not an airport transfer on its own), accommodation, car hire, and another tourist service where it forms a significant part of the holiday (a ski pass, theme-park tickets, a guided tour).

It does not matter whether it was a ready-made deal from a brochure or a tailor-made trip an agent built around your dates — both can be packages. It does not matter whether it is a beach fortnight, a city break, a ski week or a round-the-world route. And your travel company must tell you whether you are booking a package (or a “linked travel arrangement”, which is weaker) and give you the standard information about your rights.

How you booked	What you get
Package — two or more travel services bought together for the same trip	Legal protection: the organiser is responsible for the whole holiday being delivered as agreed. Financial protection: refund and repatriation if the organiser fails.
Linked travel arrangement — you were prompted to book a second service separately, with separate payment, in one visit or within 24 hours	Weaker. Some insolvency protection for money the trader holds, but the trader is not responsible for the whole trip.
Separate bookings — flight from one site, hotel from another, in your own time	No package rights. Each trader is only responsible for its own service, and there is no safety net across the trip if one of them fails.

The one-sentence versionIf it’s a package, you complain to the organiser — not to a hotel manager in another country, in another language, who has no contract with you. Getting that right is most of the battle.

The holiday isn’t what was sold — what you can actually ask for

Under the Regulations the organiser must put right any travel service that is not performed as agreed. If they can’t or won’t, you can be entitled to a price reduction for the part of the holiday that fell short, and to compensation for the damage you suffered — which can include loss of enjoyment of the holiday itself.

What we will not do is quote you a figure. There is no statutory tariff for a ruined holiday: what you get depends on how serious the shortfall was, how much of the trip it spoiled, and above all what you can prove. Which turns the whole thing into an evidence exercise:

Complain in resort, immediately — to the rep and to the hotel, and give the organiser the chance to fix it. If you say nothing until you get home, they will argue they were never given the opportunity.
Get it acknowledged in writing. An email, a rep’s form, a message on the operator’s app — anything dated.
Photograph and film everything, with dates. The pool that was closed, the building site next door, the room you were moved to.
Keep every receipt for money you had to spend putting it right — taxis, meals, a replacement hotel.
Write it down as it happens — dates, times, who you spoke to, what they said.
Then claim in writing from the organiser, setting out what was promised, what you got, what it cost you, and what you want.

Changes before you go: the significant-change and 8% rules

Two protections most travellers never hear about:

Significant change. If the organiser changes an essential element of the package significantly before departure, you can accept the change, take a substitute package if offered, or terminate the contract without paying any termination fee and get a full refund.
Price rises. An organiser can only increase the price if the contract expressly reserves the right to do so and the rise reflects specified costs (things like fuel, taxes or exchange rates), and it must be clearly explained. If the increase is more than 8% of the package price, you can cancel free of charge and get your money back.

Where you terminate and do not accept a substitute, the organiser must refund all payments without undue delay and in any event within 14 days of the contract being terminated.

Don’t accept a voucher as if it were a refundIf you are entitled to a refund, a credit note or voucher is an offer, not a substitute for your rights — you can say no and ask for the money. Equally, don’t sign anything “in full and final settlement” in resort while you are tired and want the argument over: once you settle, that is usually the end of it. Take the note home, get the evidence together, and decide calmly.

The company has gone bust — every route to your money, in order

Take these in order. Each is free.

Route	When it applies	What you get
1. ATOL (the CAA)	Your package included a flight and was sold in the UK. You should have been given an ATOL Certificate when you paid.	Haven’t travelled: a refund. Already abroad: the CAA helps you stay in your accommodation and arranges flights home. Claims must be made within 12 months of the failure.
2. ABTA or other insolvency protection	Your package did not include a flight (a coach or rail package, say).	Your booking confirmation should say who the organiser is and how your money is protected — commonly through ABTA’s scheme. Refund, or completion of the trip.
3. Section 75	You paid on a credit card and the cash price was over £100.	The card provider is jointly liable with the trader — claim from the bank. See Section 75 & chargeback.
4. Chargeback	You paid by debit card (or by credit card under £100).	Not a legal right but a card-scheme rule — ask your bank to reverse the payment. Time limits are tight, so ask promptly.
5. Travel insurance	Your policy includes end-supplier failure or scheduled airline failure cover.	Check the policy — it can cover gaps the schemes above do not.

If you are abroad when the firm fails — call before you spendDon’t immediately book replacement flights on your own card and hope to be reimbursed. If the trip is ATOL protected, the CAA’s job is to help you finish your stay and get home — check the CAA’s ATOL pages or the dedicated failure page they publish for that company first, and follow their instructions. If you do have to pay for essentials, keep every receipt.

Never pay a claims firm for thisATOL claims, ABTA claims, Section 75 and chargeback are all free to make yourself, and none of them is complicated. A firm offering to “recover your holiday money” for a share of it is taking a cut of money that is already yours. And treat unexpected calls, texts or emails about a “holiday refund” with suspicion — collapses attract scammers. If something feels off, put it through Scam Check.

Our full guide to insolvency — including flight-only bookings and airline failure, which ATOL generally does not cover — is at travel company collapse.

Escalating — ADR, then the small claims court

If the organisation is still trading and simply rejects your claim, or lowballs it:

Complain formally, in writing, to the organiser. Set out the facts, attach the evidence, state what you want and give a deadline. Keep it factual, not furious — a calm letter with photographs beats an angry one without. Need help with the wording? Try our complaints guide.
Alternative dispute resolution (ADR). If the organiser is a member, ABTA and AITO both run schemes for resolving holiday disputes without going to court. It is far cheaper and quicker than litigation, and organisers take it seriously.
Small claims court. The final backstop for a straightforward money claim. Our small claims guide explains the fees and the process.

And keep the two things apart in your head: a delayed or cancelled flight inside a package can also give you separate rights against the airline — see flight delay compensation — and lost, damaged or delayed baggage is its own claim too (lost luggage). You may have more than one route open at once, though you cannot be paid twice for the same loss.

Do this now

Twenty minutes, three jobs. (1) Find your booking confirmation and check two things: does it say package, and is there an ATOL Certificate? That decides which rights you have. (2) Build the evidence file — dated photos and video, receipts, the emails, and a written note of what happened and when, while it is fresh. (3) Write to the organiser, not the hotel: what was promised, what you got, what it cost you, what you want.

Free consumer advice: the Citizens Advice consumer helpline on 0808 223 1133. This is general information, not legal advice — SortedUK is not a law firm.

Related guides — travel & getting your money back

Travel company collapse Flight delay compensation Section 75 & chargeback Lost luggage Consumer rights

Source verification Primary sources: the Package Travel and Linked Travel Arrangements Regulations 2018 (SI 2018/634) and the Department for Business guidance on the 2018 Regulations; the UK Civil Aviation Authority — ATOL protection pages (including making an ATOL claim); and ABTA — package travel regulations. Cross-checked against Citizens Advice consumer guidance. Last verified 12 July 2026. What is a package (confidence High): a combination of at least two different types of travel service (transport; accommodation; car hire; another tourist service forming a significant part) bought together for the same trip, covering at least 24 hours or including overnight accommodation; ready-made and tailor-made both count; travel companies must tell you whether you are buying a package or a linked travel arrangement, and give the standard information about your rights. The organiser’s responsibility (confidence High): a package carries both legal protection (the organiser is responsible for the holiday being delivered as agreed and must put right services not performed as agreed) and financial protection (refund if you have not travelled, repatriation if the organiser fails while you are abroad). Changes and price (confidence High): a significant change to an essential element lets the traveller terminate without a termination fee and take a full refund; price increases are permitted only where the contract expressly reserves the right and reflect specified costs; an increase of more than 8% of the package price lets the traveller cancel free of charge; refunds on termination are due without undue delay and in any event within 14 days. ATOL (confidence High): CAA-run financial protection covering flight-inclusive packages sold in the UK, evidenced by an ATOL Certificate issued when you pay; on failure the CAA refunds those who have not travelled and helps those abroad complete their stay and get home; claims must be made within 12 months of the ATOL holder’s failure; ATOL applies to company failure, not to delayed or cancelled flights, and a flight booked direct with an airline is generally not ATOL protected. Section 75 (confidence High, consistent with our own /section-75 guide): credit-card purchases with a cash price over £100 give a joint claim against the card provider; chargeback is a card-scheme route rather than a statutory right and is time-limited. Deliberately qualitative: how much compensation a spoiled holiday is worth — the Regulations give a right to a price reduction and to compensation for the damage suffered (including loss of enjoyment), but there is no statutory tariff, and the amount turns on the seriousness of the failure, how much of the trip it affected and the evidence. We therefore state no figures. Also qualitative: the precise membership and procedure of ADR schemes (ABTA, AITO), which vary by organiser — check who your organiser is a member of. Scope: the 2018 Regulations apply UK-wide; small claims procedure differs in Scotland (Simple Procedure) and Northern Ireland. Helpline verified this session: Citizens Advice consumer helpline 0808 223 1133. SortedUK is not a law firm and this is general information, not legal advice.

Package holiday problems — common questions

Is my holiday actually a “package”?

If you bought at least two different types of travel service together for the same trip — flight plus hotel, hotel plus car hire, transport plus a significant tourist service like a ski pass — and the trip lasts 24 hours or includes an overnight stay, it is very likely a package. Ready-made or tailor-made makes no difference. Your travel company should have told you it was a package and given you information about your rights, and if it included a flight you should have an ATOL Certificate. Book the same components separately from different traders in your own time and it is not a package — which is exactly why packages are worth having.

The hotel was nothing like the pictures. What am I entitled to?

The organiser must put right services not provided as agreed. If they can’t or won’t, you can be entitled to a price reduction for the part that fell short and to compensation for the damage suffered, which can include loss of enjoyment. There is no fixed amount — it depends on how bad it was, how much of the holiday it spoiled, and what you can prove. So complain in resort and in writing, get the problem acknowledged, take dated photos and video, and keep the receipts. Then claim from the organiser, not the hotel.

The operator has put the price up. Do I have to pay it?

Only in limited circumstances. A price increase is allowed only where the contract expressly reserves the right and it reflects specified costs (fuel, taxes, exchange rates), and it must be properly explained. If the increase is more than 8% of the package price, you can cancel free of charge and get a full refund — the organiser must refund you within 14 days of the contract ending. The same right to walk away with a full refund applies if they significantly change an essential element of the holiday before you go.

The travel company has collapsed. What do I do first?

Check whether the package included a flight. If it did, it should be ATOL protected — go to the CAA, and if you are already abroad follow their instructions before booking replacement flights yourself, because their job is to help you finish your stay and get home. ATOL claims must be made within 12 months of the failure. If the package had no flight, your confirmation should name the organiser and say how your money is protected (often ABTA). Also check: paid over £100 on a credit card? The card provider is jointly liable. Debit card? Ask for a chargeback. All free — never pay a claims firm.

My flight was delayed as part of a package — is that the operator’s problem or the airline’s?

Possibly both, but they are different claims. ATOL and the package rules deal with the holiday being delivered as agreed and with company failure; a delayed or cancelled flight can give you a separate claim against the airline — see flight delay compensation. Delayed or lost baggage is another separate route again. You can pursue more than one, but you cannot be paid twice for the same loss.

Sources: Package Travel and Linked Travel Arrangements Regulations 2018 · UK Civil Aviation Authority — ATOL protection · ABTA — package travel regulations · Citizens Advice — consumer advice · Consumer Credit Act 1974 s.75. SortedUK is not a law firm and this is general information, not legal advice. Free help: Citizens Advice consumer helpline 0808 223 1133. Last reviewed: 12 July 2026.

When a package holiday goes wrong — the rights most people never use