In recent years, the way we book holidays has fundamentally changed. It’s now simpler for us to book a holiday online or even on the phone than make a trip to a high street travel agent.
But that’s resulted in a whole new wave of problems.
Recently, more and more people have been telling me that when they booked a trip, they weren’t told about what would happen if they needed to cancel their holiday – and the charges that might apply.
Meanwhile, other people are concerned about travel firms going bust.
So here’s my guide to cancelling a holiday without costs – and what to do if they cancel on you!
If you just want to cancel a holiday
If you book through a travel agent, tour operator, online website or direct, the business will have terms and conditions covering your right to cancel.
If there are costs attached then these should be upfront and clear. Under consumer law, businesses can ask you to pay a cancellation fee to cover their losses, but this must be ‘in proportion’ to what they are losing. If a holiday is non-refundable, we’d expect to see a ton of clear warnings before you click.
Many booking sites give you free cancellation as an option which you should always chose if it’s available – while popping something in your diary for a few weeks before the free cancellation ends.
The Competitions and Markets Authority have loads of guidance on unfair terms and costs on its website.
What travel firms are REALLY allowed to charge you for cancelling
If you cancel a packaged holiday
New rules that kicked in last July [the Packaged Travel and Linked Travel Regulations 2018] mean that if you booked two or more different parts of a holiday (flights and hotel for example) from the same firm, it’s likely to be a ‘packaged holiday’.
This is also likely to be the case if you’ve booked through a tour operator
This means you might be entitled to cancel the holiday without a fee if:
- The holiday company makes significant changes to your holiday
- It puts prices up after you book
This also covers exceptional reasons for the holiday being cancelled (dangers in the country you’re travelling to, for example).
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What if I can’t travel?
It’s incredibly important to get a good travel insurance policy that covers you from the point you book the holiday, not the day you go away.
If you buy travel insurance with immediate cover, this should cover you for things like cancellation or curtailment if you:
- Can’t travel due to illness
- Can’t travel due to sickness or death of an immediate family member
There are other scenarios that may be covered depending on the policy. There’s also a load of caveats, unfortunately.
But don’t worry – if the firm won’t pay a claim, the free Financial Ombudsman can look at travel insurance disputes.
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What if the firm cancels my trip or goes bust?
If a firm cancel and you’re worried it’s going out of business, contact the airlines, hotels and other companies who you were booked with to see if they have your money and are able to reopen or honour the booking.
If it’s not looking positive, then don’t delay. Contact your card provider and ask them to ‘charge back’ the money. Explain the has told you they are cancelling the holiday or indications are they’re going bust.
If you’ve paid on a credit card (over £100 and under £30,000) you may be able to claim under Section 75 of the Consumer Credit Act for a full refund from the card provider – even if you only paid a deposit on the card.
Other protection
If you’ve booked a packaged holiday with a flight, then ATOL can help with disputes and cancellations. If it’s without a flight or a cruise the ABTA can potentially help.
Their websites have guides on how to proceed.
Airlines also have dispute resolution schemes (Resolver links you to the right ones).
Resolver can help you sort out complaints about pretty much anything – so why not help a friend or relative sort out a problem, get a refund or make a claim. Check out www.resolver.co.uk and share your experiences at yourstories@resolvergroup.com
