Your cancellation rights when a UK holiday falls through

Package holidays versus holiday lets: understanding your legal position

The first thing to know is whether you booked a package holiday or a stand-alone holiday let. The law treats them very differently. Package holidays combine at least two elements, such as flights and accommodation or rail travel and a hotel, booked together. These are covered by the Package Travel and Linked Travel Arrangements Regulations 2018, which give you strong protections.

If you booked a cottage, flat or house on its own, you do not have package travel protection. Your rights depend almost entirely on the terms and conditions you agreed to when you booked, provided those terms are fair under the Consumer Rights Act 2015. ABTA protection applies to land- and sea-based package holidays like coach, rail or cruise trips, but not to standalone accommodation. ATOL covers flight-inclusive packages. If you booked direct with a property owner or through a listing site, you are relying on contract terms, not statutory package rights.

This matters because if a package organiser cancels, you are entitled to a full refund within 14 days, regardless of the reason. If a holiday cottage owner cancels, the refund you receive depends on what the contract says, though the terms must still be fair and not impose disproportionately high cancellation fees.

When you cancel the booking yourself

If you cancel for personal reasons, such as a change of plan or a family commitment, you will usually lose at least part of what you paid. Cancellation fees typically increase the closer you get to the arrival date. Many holiday let owners charge a percentage of the total cost, and it is common to lose the full amount if you cancel very close to the check-in date.

Under consumer law, cancellation fees must be reasonable and justifiable, never excessive. The amount kept should reflect what the host actually loses because of your cancellation. For example, if a guest cancels and the owner successfully re-lets the property at the same rate, the only fair deduction is an administration charge and any re-advertising costs. If the property is re-let for less, the owner can keep the difference.

For package holidays, the law is similar. You can cancel for personal reasons, but the travel company will charge a termination fee. The fee must be justifiable and is often set out in the terms as a sliding scale. It is worth asking for a breakdown if you think the charge is unfair.

Frequently asked questions

Can a holiday cottage owner keep my deposit if I cancel?+

Yes, if the booking terms state that the deposit is non-refundable on cancellation. However, the amount kept must be reasonable and reflect the actual loss to the owner. If they re-let your dates at the same rate, they should only keep an administration charge and re-advertising costs. If they cannot re-let, they can usually keep the full deposit and potentially more, depending on how close to the arrival date you cancel.

What happens if the holiday let owner cancels a week before I am due to arrive?+

The owner should offer you a full refund or suitable alternative accommodation. If the contract allows them to cancel and specifies what you will receive, they must follow those terms, provided they are fair under consumer law. If they offer an alternative and you decline it, check the contract to see whether you are still entitled to a full refund. Many owners will refund in full when they cancel at short notice to avoid reputational damage and comply with fair trading obligations.

Does travel insurance cover me if I cancel a UK holiday because I change my mind?+

No, standard travel insurance cancellation cover only applies to specific events such as illness, injury, jury service, or a close family member's death. Changing your mind or deciding not to travel for convenience is not covered. Some insurers offer cancel for any reason cover as an optional add-on, but it is not widely available in the UK and typically only reimburses 50% to 75% of costs.

Am I entitled to compensation as well as a refund if the holiday is cancelled?+

It depends on the reason for cancellation and the type of booking. For package holidays, if the organiser cancels due to extraordinary circumstances such as a natural disaster, you receive a full refund but no additional compensation. If the organiser cancels for commercial reasons or makes a significant change, you may be entitled to compensation as well as a refund. For holiday lets, compensation is rare unless the contract specifically provides for it or the cancellation breaches consumer protection law.

How long should I wait for a refund after a cancellation?+

For package holidays covered by the Package Travel and Linked Travel Arrangements Regulations 2018, the organiser must refund you within 14 days of the cancellation. For holiday lets, the timescale depends on the contract terms, but a reasonable period is typically within a few weeks. If the refund does not arrive, follow up in writing and escalate to Citizens Advice or Trading Standards if necessary.

Your cancellation rights when a UK holiday falls

Package holidays versus holiday lets: understanding your legal position

When you cancel the booking yourself

Tell hosts what you are looking for

When the owner or organiser cancels on you

Deposits and what happens to your money

Extraordinary circumstances and force majeure

Travel insurance and when it covers cancellation

Practical steps to get your money back

Sources

Frequently asked questions

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