What are your rights if your package holiday gets cancelled?

What are your rights if your package holiday gets cancelled?

With the surge of holidaymakers being stuck in chaotic queues at airports and the increase of flight delays and cancellations across airlines following staff shortages and the influx of travellers, it is important to recognise your rights if your holiday is cancelled.

What is a package holiday?

A package holiday can be any type of holiday, from a city break to a beach holiday to backpacking around the world. These packages can be 'ready-made' by the tour operator or made to suit your preference and budget.

A holiday becomes a 'package holiday' when you buy two or more travel services together. It must cover at least 24 hours and involve overnight accommodation. For example, booking both transport, either a flight, coach or train and accommodation at the same time. A cruise is also considered a package holiday.

It also counts as a package holiday if you:

  • -Pay a single price through one payment.
  • -Select a combination of services before you agree to pay for them.
  • -Are charged an inclusive or total price for all the services you buy.
  • -Have seen the holiday advertised or sold as a package.
  • -Buy one travel service and your details, including payment details, are transferred to a different company where you booked another service within 24 hours.

Your rights?

If a travel agency or company cancels your holiday, you are entitled to a full refund.

The travel agency may offer you an alternative holiday, give you the opportunity to rebook for a later date or provide you with a voucher to use for future trips, but it is up to you what you choose.

The Competition and Markets Authority explains that 'if package holiday organisers cancel you holiday you are entitled to a full refund within 14 days of the cancellation date.'

Adding, 'your refund should be provided irrespective of whether the company you booked with has received funds from other companies involved in your trip, such as airlines.'

The option of a refund and the process of applying for it should be clearly communicated, easy to do, including clear instructions.

Alternatively, you may be offered a Refund Credit Note, however, it is important to check the terms and conditions to ensure you are willing to accept it. In any event, if you do accept, you are entitled to exchange the Credit Note for cash at any time.

If you do end up having to make a claim for a cancelled holiday, or any other claim arising out of your holiday, since 2022 there has been a 'pre-action protocol' published by the Ministry of Justice which sets out the process for resolving package holiday claims. It is important to follow the protocol, as failure to do so could result in award of costs against the party that has failed to follow it. If you believe you may have a claim arising out of a package holiday please contact our dedicated Client Relations team on 01603 693510 or email enquiries@clapham-collinge.co.uk.