Package holidays: what you are covered for when it goes wrong
A package gives you one company responsible for the whole trip. If a significant part changes or fails you can cancel for a full refund, and flight compensation still applies on top.
What counts as a package
Two or more travel services bought together for one trip: a flight and a hotel, a flight and car hire, a hotel and a tour.
Booked from the same company at the same time, it is a package and the Package Travel Regulations apply. Booked separately from different sites on the same afternoon, it usually is not.
That difference decides whether one company answers for the whole holiday, or each supplier answers only for its own part.
If something significant changes
The organiser must tell you, and you can accept the change, take an alternative holiday, or cancel for a full refund.
Significant covers a change of resort, a large change of dates, or a drop in the standard of what was sold. A flight moved by an hour is not.
If what you got was worse than what was sold, you can claim the difference and for the loss of enjoyment on top.
ATOL, and what it is not
ATOL protects you against the company failing. If the organiser goes out of business before you travel you get your money back; if it fails while you are away you are flown home.
It does not cover a delayed flight, a disappointing hotel, or a cancellation by the airline. Those are separate claims.
ATOL covers packages that include a flight. A hotel-only booking is not covered by it.
Flight compensation still applies
Delay and cancellation compensation comes from UK261 and EU261, which apply to the flight regardless of how it was sold.
So a delayed flight inside a package can be worth both the UK261 payment and a claim against the organiser for the days of holiday lost. They are different entitlements, and claiming one does not forfeit the other.
Common questions
Does ATOL cover a delayed flight?
No. ATOL protects you if the company fails. A delay is covered by UK261 or EU261 against the airline, which is a separate claim.
Can I claim flight compensation on a package holiday flight?
Yes. The compensation comes from the flight regulations and applies however the flight was sold, including inside a package.
My hotel was not what was advertised. What can I claim?
The difference in value between what you were sold and what you got, and compensation for the loss of enjoyment. The claim is against the organiser, not the hotel.
Check your own flight
AirHelp will tell you whether a specific flight qualifies and handle the claim with the airline. TravelTrauma earns a commission if a claim succeeds, at no cost to you.
Check your claimMore guides
- Flight delay compensation: what you can claim in the UK and EU
- Your flight was cancelled: refund, rebooking and compensation
- Lost or delayed baggage: what you can claim
- Denied boarding and overbooked flights: what you are owed
- Missed your connection: what the airline owes you
- The airline said no: how to challenge a refused claim
- Downgraded to a lower cabin: what you get back
Last reviewed 2026-10-08. This explains the rules and is not legal advice; the circumstances of your flight may change what applies.