A cancelled holiday is stressful and expensive. Whether it is a package holiday, a flight-only booking, or accommodation pulled at the last minute, UK law gives you clear refund rights in many cases.
This guide covers holiday cancellation refund rights under the Package Travel Regulations and flight rules — and what to do when companies offer vouchers instead of cash.
Package Holidays — Your Strongest Protection
A package holiday combines at least two of: transport, accommodation, or another tourist service, sold as one trip. If your organiser cancels, you are usually entitled to:
- A full refund within 14 days
- OR an alternative holiday (your choice in most cases)
- Compensation in some circumstances (unless extraordinary circumstances)
The organiser must refund you — not the airline, hotel, or transfer company separately.
Flight-Only Bookings
If you booked flights separately (not as a package), EU261/UK retained rules apply:
- Full refund or re-routing if the airline cancels
- Compensation (£220–£520) in many cases unless extraordinary circumstances
- Care and assistance (meals, hotels) if stranded
See our detailed guides on flight cancellations and flight delays.
Refund vs Voucher — Know the Difference
| Offer | Should you accept? |
|---|---|
| Full cash refund to original payment method | Yes — this is your legal right in most cancellation cases |
| Rebooking on alternative dates | Your choice if it suits you |
| Voucher with expiry | Only if you genuinely want it — not required by law for package cancellations |
| Partial refund | Usually insufficient — check your full entitlement |
Step-by-Step: Claim Your Holiday Refund
- Identify who you contracted with — package organiser vs airline vs hotel direct.
- Gather documents — booking confirmation, cancellation notice, payment receipt.
- Request refund in writing — email with booking reference and amount paid.
- Set a 14-day deadline for package holiday refunds.
- Escalate — ABTA/ATOL routes, chargeback, Section 75, or court.
A structured plan keeps track of refund deadlines and escalation steps
Section 75 and Chargeback for Holidays
Package holidays often cost over £100 — making Section 75 a powerful backup if the organiser goes bust or refuses to refund:
- Paid by credit card with direct link → Section 75 claim
- Paid by debit card → chargeback UK dispute
- Paid via PayPal → PayPal dispute (Section 75 link may be weaker)
Act before time limits expire.
A formal cancellation claim letter sets clear expectations
ATOL Protection
If your trip was ATOL-protected and the company fails, the ATOL scheme should refund you or repatriate you. Check your certificate and contact the Civil Aviation Authority's ATOL team if the organiser is unresponsive.
Using Refundly for Cancelled Holidays
Refundly covers holidays and travel disruption:
- Select "Holidays & travel" → cancelled trip or flight
- See your rights based on package vs flight-only booking
- Get a personalised escalation plan
- Use letter templates and track responses
Final Tip
If your holiday is cancelled, respond in writing the same day requesting a cash refund. Companies often push vouchers to cash-flow problems — but that is not your obligation when the law entitles you to your money back.