I want to cancel my package holiday. What fees can they charge?

What the Law Says

The Package Travel and Linked Travel Arrangements Regulations 2018 set strict rules on cancellation fees for package holidays sold in the UK. These rules ensure fairness and transparency — especially because package holidays are legally distinct from standalone bookings.

Under the law, a package holiday is a combination of at least two travel services (e.g., transport + accommodation) sold at an inclusive price, booked within 24 hours, and lasting over 24 hours or including overnight accommodation.

If the organiser cancels your package holiday, you’re entitled to a full refund — and if they cancel less than 14 days before departure, you may also claim compensation for unavoidable, reasonable expenses.

If you cancel, the organiser may charge a fee — but only if it’s fair, transparent, and based on actual losses. The fee must be set out clearly in your contract *before* you book, and it cannot be a penalty designed to deter cancellation.

Statutory Text

Where the organiser cancels the package, the traveller is entitled to a full refund of all payments made…

— Package Travel and Linked Travel Arrangements Regulations 2018, reg. 13(1)

Statutory Text

The organiser may charge a reasonable fee for cancellation by the traveller, provided that the amount of the fee is specified in the information to be supplied before the contract is concluded.

— Package Travel and Linked Travel Arrangements Regulations 2018, reg. 14(2)

Sources