If you’re wondering how can I get a refund for a cancelled package holiday, the reassuring news is that UK law is firmly on your side. When the organiser cancels your package holiday, you’re entitled to a full refund — not vouchers, not rebooking, a refund.

The less reassuring news is that some companies drag their feet, offer “refund credit notes” that aren’t real refunds, or go quiet entirely. Here’s exactly what the law says, the deadlines that apply, and the escalation ladder if your refund doesn’t arrive.

How Can I Get a Refund for a Cancelled Package Holiday? Know Your Rights

Under the Package Travel and Linked Travel Arrangements Regulations 2018, if the organiser cancels your package holiday (or makes a significant change you don’t accept), you can choose between a full refund or an alternative holiday. Key points:

• The refund must be paid within 14 days of the cancellation.
• It must be a full refund — every penny you paid, including deposits.
• They cannot force vouchers or credit notes on you. Refund credit notes are only valid if you actively choose them.
• If only part of the holiday is affected (e.g. the hotel is available but flights are cancelled), you’re still entitled to a refund of the affected part, or the whole thing if the change is significant.

The Citizens Advice website has an excellent plain-English breakdown of these rights with template letters.

Step 1: Ask Properly, in Writing

Phone calls are fine for information, but your refund request should be in writing — email is perfect. Be polite, specific and firm:

• State your booking reference, travel dates and what was cancelled.
• State clearly: “I am requesting a full refund under the Package Travel Regulations 2018, to be paid within 14 days.”
• Give the bank details for the refund (it should go back to the original payment method).
• Keep every email. Screenshot any online chat. Note dates and names from phone calls.

Send it to the package organiser (the company you booked with), not the airline or hotel directly — the organiser is legally responsible for the whole package.

Step 2: If They Offer Vouchers Instead

This is the most common dodge. Companies offer “refund credit notes” or vouchers because it keeps your cash in their business. You are not obliged to accept. Reply in writing: “Thank you, but I am exercising my right to a cash refund under the Package Travel Regulations.”

One nuance: ATOL-protected refund credit notes issued during the pandemic were given special status, but that scheme has ended. Today, a credit note is only as good as the company’s word — and if the company goes bust, a credit note may be worthless while a proper ATOL-protected booking is covered. Always take the cash.

Step 3: Escalate If They Stall

• After 14 days with no refund: send a formal follow-up referencing the deadline and stating you’ll escalate.
• Section 75 (credit card): if you paid by credit card (even just the deposit) and the holiday cost £100–£30,000, your card provider is jointly liable. File a Section 75 claim — it’s often faster than fighting the travel company.
• Chargeback (debit card): ask your bank for a chargeback within 120 days of the cancellation. Less powerful than Section 75 but still effective.
• ATOL: if the company has gone bust, claim through the ATOL scheme via the Civil Aviation Authority. This is exactly what ATOL exists for.
• ADR/ombudsman: many travel companies belong to an alternative dispute resolution scheme — check your booking terms.
• Small claims court: the nuclear option, but straightforward via Money Claims Online for amounts under £10,000. Companies often pay up when the court papers arrive.

What If YOU Want to Cancel (But They Haven’t)?

Different situation, different rights. If the holiday is still going ahead but you want to cancel — because of FCDO advice against travel, for example — you may be entitled to cancel without the usual fees if “unavoidable and extraordinary circumstances” apply at the destination.

Check the GOV.UK foreign travel advice for your destination: if it advises against all travel there, that’s strong grounds. If it’s just your own worry with no official advice, standard cancellation charges will apply — which is why good travel insurance (bought promptly after booking) matters so much.

Package Holiday Refunds: Common Scenarios

• Airline cancels, hotel still open: the package organiser must offer a full refund or alternative — the package is the organiser’s responsibility as a whole, not per-component.
• You test positive before travel: if the holiday’s still operating, standard cancellation terms apply — this is what travel insurance is for. Claim there, not from the organiser.
• FCDO advises against travel: if advice changes to “against all travel” after booking, you’re entitled to cancel for a full refund under the “unavoidable and extraordinary circumstances” provision.
• Significant change (different hotel, different dates): you can accept the alternative or take a full refund — your choice, not theirs. “Significant” is judged reasonably: a different hotel in the same resort usually qualifies.
• Company goes bust before travel: ATOL protects flight-inclusive packages — claim through the CAA. For non-flight packages, Section 75 (credit card) is your route.
• They’ve gone quiet: send everything in writing, set a 14-day deadline, then escalate to Section 75/chargeback. Silence is a tactic — don’t let it work.

Keep in Mind

Keep every piece of correspondence — emails, chat screenshots, reference numbers, names and dates of phone calls. If you end up in a Section 75 claim or small claims court, contemporaneous records win cases. Start a dedicated email folder the moment a cancellation happens.

• Don’t accept phone-only resolutions — always ask for confirmation in writing before considering anything settled.
• Check your travel insurance excess before claiming — small claims below the excess aren’t worth filing.
• Leave factual reviews afterwards — they warn other travellers and incentivise better company behaviour.

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Don’t Accept Less Than Cash

Getting a refund for a cancelled package holiday is your legal right: full refund, within 14 days, no vouchers unless you choose them. Ask in writing, cite the Package Travel Regulations, and escalate through Section 75, chargeback or ATOL if they stall. The law is on your side — make them follow it.