I want to cancel my package holiday 2 weeks before departure. What fees can they charge?

What the Law Says

The EU Package Travel Directive sets clear limits on cancellation fees for package holidays booked in the European Union.

Under the Package Travel Directive (EU) 2015/2302, if you cancel a package holiday before departure, the organiser may only charge you a cancellation fee that reflects their 'actual costs' and 'reasonable profit'. The fee must not be punitive or disproportionate.

The Directive does not set fixed percentages, but Recital 26 states: 'Where the traveller cancels the package travel contract, the organiser should be entitled to deduct from the amount to be reimbursed a reasonable proportion of the total price, corresponding to the services already provided and to the costs and expenses saved as a result of the cancellation.'

Importantly, Article 12(2) says: 'Where the traveller cancels the package travel contract, the organiser shall reimburse all payments made by the traveller without undue delay and in any event not later than 14 days after the cancellation.'

Statutory Text

Where the traveller cancels the package travel contract, the organiser should be entitled to deduct from the amount to be reimbursed a reasonable proportion of the total price, corresponding to the services already provided and to the costs and expenses saved as a result of the cancellation.

— Directive (EU) 2015/2302, Recital 26

Statutory Text

Where the traveller cancels the package travel contract, the organiser shall reimburse all payments made by the traveller without undue delay and in any event not later than 14 days after the cancellation.

— Directive (EU) 2015/2302, Art. 12(2)

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