Whether you’re travelling in the UK or abroad, one of your concerns is going to be how safe your money is when you book and what you can do if your holiday is cancelled. This guide covers your options.
What’s in this guide
How can you protect yourself when booking a holiday?
As we’ve seen with the conflict in the Middle East, or the power cuts in Spain and Portugal, travel can be disrupted for reasons beyond the control of holiday operators.
Remember to budget for insurance
Organise your travel insurance as soon as you book your holiday so that you’re covered right away if your flights are cancelled or your situation changes.
How you buy your holiday
Plan how you’re going to pay for your holiday to benefit from UK legal protection. If you’re spending between £100 and £30,000 and use your credit card, you should be covered under Section 75 of the Consumer Credit Act 1974. This means that if anything goes wrong, both your card provider and the holiday retailer have responsibility for the purchase, so you can claim your money back from either.
This protection also applies to credit card payments made through Apple Pay or Google Pay, (where linked to your credit card) and to purchases made with PayPal Credit. But it generally won't apply if you pay through a logged-in PayPal account (even using a credit card), or via other third-party wallets that break the direct link between you, the card issuer and the supplier.
For debit card payments you need to use ’chargeback’, a card-scheme rule rather than a legal right.
Could a deal be a scam?
Pause before you book what looks like an amazing deal, scammers target holiday money too. Stop Fraud has tips on how to protect yourselfOpens in a new window If you’re worried you’ve already been tricked follow our guide on What to do if you’ve been scammed.
Is the company signed up to industry protection?
Check to see if the company you’re booking with is ABTAOpens in a new window or ATOLOpens in a new window protected. These schemes were set up so that you do not lose money or get stuck abroad if a travel company goes out of business. ATOL covers package holidays that include flights. UK companies selling these must be ATOL protected by law. ABTA is for package holidays where you travel by land or sea and not on flights, eg coach, rail and cruise trips.
Be careful with what the industry calls ‘linked travel arrangements’ where you buy a service from one tour operator and are then encouraged to buy another one, but your information and payment details are not transferred on. Which? Has a guide to your different rights with a package holiday or a linked arrangementOpens in a new window
Security, health, passports and visas
The government provides advice on the risks you might face when travelling abroad to help you decide if it’s safe for you to go to a particular place. It’s important to check this as your travel insurance usually will not cover you if you visit somewhere the government advises against. Keep checking as the information is updated regularly and the situation can change between your booking and departure.
See the latest guidance for locations worldwideOpens in a new window on GOV.UK. You can also check whether you need a visa or vaccinationsOpens in a new window
Apply for a free Global Health Insurance Card (GHIC) to access medically necessary health care abroad. If you already have one, check it’s still up to date. Find more information on the rules and how to applyOpens in a new window, through the NHS.
Your passport needs to fit the rules for the place you’re visiting. The Post Office has a guide on how much time different countries say must be left on your passportOpens in a new window so you can get in.
The European Union’s (EU) Entry/Exit System (EES) has changed and you might now need to allow more time to cross borders. You can find more information about travelling to the EU and Schengen countriesOpens in a new window on GOV.UK.
Can I get a refund from my travel provider if they cancel my trip?
Normally, if the flight you booked is cancelled, the airline must get you to your destination on an alternative flight or give you a refund. For a package holiday, you must claim this refund within 14 days.
If you’re delayed, the airline might need to provide food and hotel accommodation known as your ‘right to care’. The length of the delay is what decides whether you qualify. Keep receipts if you end up booking somewhere yourself. The UK’s airline regulator, the Civil Aviation Authority (CAA) sets out your rights when flights are delayedOpens in a new window
In some situations that are beyond the control of airline companies, like extreme weather or the outbreak of a war, they do not have to offer compensation. Check your travel insurance for conditions like this too.
Before you claim on your insurance or contact your credit card company about your legal rights, they’ll expect you to have tried to get a refund from your travel provider, so contact them first. It’s usually the quickest way to get a refund and should happen without the same amount of effort and proof other claims require.
You might be offered vouchers or a credit note and the option to arrange an alternative flight or holiday. But taking vouchers or a credit note could be risky, as you’re unlikely to be able to use them if your travel provider goes bust.
Taking vouchers may also affect other ways to claim if things go wrong, such as via your credit card provider or your travel insurance.
The flight disruption in 2026 and uncertainty over the impact of fuel prices on holidays means it’s helpful to know your rights when travel plans go wrong. You can follow the latest updates on Money Saving ExpertOpens in a new window
If you booked with a UK travel company, you’re generally entitled to a cash refund when they cancel — you don’t have to accept a voucher or rebook. For companies based outside the UK, your rights could be different, and a cash refund isn't guaranteed.
If your holiday provider refuses to give a refund and tells you to claim on your travel insurance or with your credit card instead, make sure you get this in writing. You’ll need this confirmation as evidence to show your insurer or credit card provider.
If you can’t get a refund from your travel provider, you might be able to make a claim on your credit card or travel insurance
What happens if only part of my holiday has been cancelled?
If part of your holiday is cancelled and it wasn’t booked as a package holiday, it’s possible that only the provider of the cancelled part of your stay will offer you a refund.
For example, if your airline has cancelled your flight, but your hotel booking is still available, you’ll only be entitled to a refund from the cancelled flight.
But it’s worth contacting the holiday provider of the parts that have not been cancelled to see if they will offer you a refund before making a claim on your travel insurance policy.
If the travel provider is still offering their service (for example, the hotel is still offering you accommodation despite the fact your flight has been cancelled), then you will not be entitled to a refund and you’re unlikely to have the right to claim on your credit card.
Find more help about making a claim for a cancelled holiday if you booked it as a package holidayOpens in a new window
Can I get a refund from my credit card provider for a cancelled holiday?
If you booked a holiday or flights costing between £100 and £30,000 and paid either a deposit or the full price on your credit card, you might be able to make a claim under Section 75 of the Consumer Credit Act 1974. This is a legal right and applies if the airline or holiday company goes bust or the holiday is cancelled. If your travel provider will not or cannot give you a refund, try this next.
What is covered:
- The cost of your flights if they’re cancelled or if the airline goes bust.
- The cost of your holiday if it’s cancelled or the holiday company goes out of business.
- Additional expenses or consequential loss - for example, if you had to buy more expensive flights to get home after an airline failed.
What isn’t covered:
- In some cases, if you buy a ‘flight only’ journey from a third party, such as a travel agent, you might not be able to make a claim because the third party was only contracted to provide the tickets and not the flight.
- If you didn’t pay the travel provider directly using your credit card – but instead paid through a third party such as a travel comparison website or third-party payment processor like PayPal, you might not have Section 75 protection.
- Purchases made by additional cardholders may not be covered, unless the ticket was bought on behalf of the main cardholder
- You’ll be unlikely to get back any costs that you didn’t have to run up for example, if you decided to extend your stay after the airline went bust (longer than you needed to).
- If there’s any part of your holiday that you’re making a claim for that isn’t directly affected by an extraordinary circumstance like a pandemic, for example, if you paid for your flights and hotel separately, and the flight is cancelled (stopping you from getting to the hotel), then a Section 75 claim may be possible for the flight. But if the hotel booking is still available, even if you would have difficulty travelling to it, then you’re unlikely to be covered by Section 75 for the cost of the hotel.
- Even if the disruption is outside the airline’s control, like severe weather, you should still be offered a refund or an alternative flight – but you might not get compensation.
- If you booked the travel using a voucher from your travel provider for an earlier cancelled booking, you’re unlikely to be able to claim under Section 75.
What if I booked on a debit card or I don’t have a valid Section 75 claim?
If you paid with your debit card (or a prepaid card) or if it was a credit card booking not covered by the Section 75 rules, then you might still be able to get a refund under the ‘chargeback’ scheme.
For help on making your claim, see our guide How chargeback and section 75 protection work for your credit and debit card
Making a claim on your travel insurance
Travel insurance policies vary and what they pay out will depend on your policy. But most will cover you if you've lost money after your holiday has been cancelled, including in exceptional situations such as a pandemic. Like car or home insurance you might also have to pay an excess. For example, if your holiday cost £500 and you agreed a £100 excess, you’ll be refunded £400.
If you’re claiming because your holiday has been cancelled then your travel insurer will usually expect you to have tried to get a refund first from your airline, accommodation provider or holiday company.
Shop around, when you book your travel insurance as policies offer different protections. Check our guides on what travel insurance usually covers and what a good policy looks like. Look carefully at any ‘add ons’ too – the details really count when you need to claim.
See the section above for more information on getting a refund from your holiday company.
If you paid for your holiday by credit or debit card, some travel insurers might ask you to request a refund from your card provider before making an insurance claim.
Making a claim with your credit card provider could mean you get more of your money back. Unlike insurance, a claim with your credit card provider under Section 75 will not require an ‘excess’ payment (where you have to pay the first part of any claim) or limit your claim (as long as the amount you paid was below £30,000).
You’ll be able to get money back for anyone you also booked for on your card who doesn’t have their own travel insurance or isn’t covered by your policy.
See above for more information on making a refund claim with your card provider.
What happens if my holiday provider goes bust?
If you book a package holiday with a UK-based firm (where you buy multiple parts of a holiday, for example, flights and hotel, from one company or website, in one go) then you won’t lose any money as long as the company was ATOL-protected.
ATOL is a scheme run by the Civil Aviation Authority (CAA). This protection covers the money paid to a travel company for any holiday package that includes a flight. Packages without flights are not usually covered by the ATOL scheme.
Generally, flights booked directly with an airline and some flight-only bookings with your tour operator will not be protected unless you’ve received an ATOL protected certificate with your booking.
Find out more about making a claim from the CAAOpens in a new window
What if my holiday was not ATOL-protected?
If you booked a ‘DIY’ holiday, or it’s not a UK-based company, you probably won’t have ATOL protection.
Unfortunately, your travel insurance policy may not cover you if your holiday provider goes bust, but it’s still worth checking the terms of your cover.
However, if you paid for your holiday by credit card then you may be able to get your money back from your card provider.
