Buying a Holiday Online: Rights, Cancellations and Refunds

Your Rights When Booking a Holiday Online

Most people now book holidays online rather than visiting a high street travel agent. Going direct to airlines, hotels or tour operators often means lower prices because of reduced overheads and fewer people handling your booking.

Before you commit to any purchase, knowing where you stand legally can save trouble later. UK consumer law provides protection when you buy from businesses based in this country, though the rules differ depending on what type of holiday you book and who you book it with.

When you buy from a UK based company online, they must provide certain information before you complete your purchase. This includes:

• The full name of the business or trader
• A physical address, not just a PO Box
• Contact details, ideally including a phone number
• A clear description of what you are buying
• The total price, including all taxes and fees, before you pay
• Details of your cancellation rights
• How long the contract will last and any conditions attached

If a company hides fees until the final checkout stage or fails to give you this information, you may have grounds for complaint or even cancellation. These requirements stem from the Consumer Contracts Regulations 2013. While these regulations cover most online purchases from UK traders, travel and accommodation bookings tied to specific dates have different rules, which we cover below.

Package Holidays and Financial Protection

The type of holiday you book affects your level of protection. A package holiday, where you buy flights and accommodation together from one company, carries stronger safeguards than booking each element separately.

Under the Package Travel and Linked Travel Arrangements Regulations 2018, companies selling package holidays must take responsibility for the whole trip. If something goes wrong with any part of the package, you deal with one company rather than chasing multiple suppliers.

Package holiday providers must also protect your money. For holidays including flights, this usually means ATOL protection. ATOL stands for Air Travel Organiser's Licence and is a scheme run by the Civil Aviation Authority. If your tour operator goes bust before or during your trip, ATOL protection should ensure you get a refund or can continue your holiday.

When you book an ATOL protected holiday, you should receive an ATOL certificate, typically sent by email when you pay or handed to you if booking in person. Keep this document safe as it confirms your protection. You can check whether a company holds a valid ATOL licence on the CAA website.

For package holidays without flights, companies may use other protection schemes such as ABTA bonding. ABTA members must meet certain standards and provide financial protection, though the details vary. Check what protection applies before you book, particularly for coach tours, cruises or holidays within the UK.

If you book flights and hotels separately through different websites, you will not usually have package holiday protection. Each booking stands alone, and if one part falls through, you must deal with each company individually. This is where travel insurance becomes essential, as it can cover losses when things go wrong with separate bookings.

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Cancellations and Refunds

Your right to cancel a holiday booking depends on several factors, including the type of booking and when you decide to cancel.

The Consumer Contracts Regulations give most online shoppers a 14 day cooling off period to change their mind. However, accommodation and transport bookings tied to a specific date fall outside this protection. Because most holiday bookings specify particular travel dates, you cannot automatically cancel just because you have second thoughts.

Instead, your cancellation rights depend on the terms and conditions you agreed to when booking. Many companies allow cancellations but charge a fee, which often increases the closer you get to your departure date. Some bookings, particularly cheaper deals, may be non refundable from the start. Always read the cancellation policy before you book, and consider travel insurance to cover cancellation costs if your circumstances change unexpectedly.

If the company cancels your holiday, package travel rules generally favour the consumer. For package holidays, you are entitled to a full refund if the operator cancels, and they must return your money within 14 days. You may also be entitled to compensation depending on how much notice they gave you. However, circumstances beyond the operator's control, such as natural disasters or government travel restrictions, may limit compensation even when refunds are due. If you have not received your refund within 14 days, write to the company setting a firm deadline and warn that you will escalate the matter to your card provider or a dispute resolution service.

When something goes wrong during your holiday, such as accommodation not matching its description or promised services not being provided, you can claim a refund or compensation for the affected parts. Keep evidence of any problems, including photos and written communications with the company.

If you paid by credit card for a booking costing more than £100, you may have additional protection under Section 75 of the Consumer Credit Act. This makes your card provider jointly liable if things go wrong. Note that Section 75 protection applies when the company you paid is based in the UK or has a UK presence. Debit card payments may be covered by chargeback schemes, though these offer less formal protection.

Making a Complaint

If you have a problem with your holiday booking, start by contacting the company directly. Put your complaint in writing, either by email or letter, and keep copies of everything you send and receive. Explain clearly what went wrong, what you want them to do about it, and include any supporting evidence.

Give the company reasonable time to respond. Most will have their own complaints procedure, and many issues can be sorted out at this stage without taking things further.

If you cannot resolve the matter directly, check whether the company belongs to a trade body. ABTA operates a dispute resolution service for complaints against its members. The scheme can help settle disagreements without going to court, though both sides must agree to use it.

For disputes with airlines, particularly around flight delays or cancellations, you can escalate to an approved aviation alternative dispute resolution body. The CAA website lists ADR providers for different airlines.

As a last resort, you can take your case to the small claims court. This may be appropriate for smaller amounts where other routes have failed. The process is designed to be accessible without needing a solicitor, though you should consider whether the time and court fees justify the amount you might recover.

Since Brexit, consumer protections for holidays booked with EU based companies have become more complex. While UK regulations remain largely similar to EU rules, enforcing your rights against companies based outside the UK can prove more difficult. When booking with overseas operators, check what protection schemes apply and ensure you have adequate travel insurance.

For more detailed guidance on your consumer rights, the Citizens Advice website offers free information on holiday bookings and complaints. GOV.UK also publishes official guidance on package travel regulations.

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