Having a holiday cancelled is stressful, but knowing your rights makes getting your money back much easier. What you are entitled to depends on who cancelled and how you booked, and there are several routes to a refund. This guide explains how to get a refund for a cancelled holiday, from your rights when an operator cancels to what to do if you cancel or a company fails. It is general guidance, not legal advice.
First, work out who cancelled
Your rights depend heavily on the circumstances. There is a big difference between the travel company cancelling your holiday, you choosing to cancel, and the company going out of business. Each situation has different rules and routes to a refund. Establishing exactly what has happened, and checking your booking terms and any protections you have, is the essential first step. Once you know which situation you are in, you can follow the right process and understand what you are realistically entitled to claim back.
If the travel company cancels
If a travel company cancels a package holiday, you generally have strong rights, typically to a full refund within a set timeframe, often a couple of weeks, under the rules covering package travel. You may also be offered an alternative holiday instead, but you do not usually have to accept it. Insist on your right to a cash refund if that is what you want rather than a credit note. Keep all correspondence, and follow up in writing if a refund is delayed beyond the period the rules allow.
Significant changes by the operator
Sometimes a company does not cancel outright but makes a significant change, such as a major change to dates, destination or the core of the holiday. In these cases you usually have the right to accept the change, take an alternative, or cancel and receive a refund. Minor changes may not trigger these rights. Checking your booking terms and the rules on significant changes helps you understand your options. If a change effectively ruins the holiday you booked, you are often entitled to walk away and get your money back.
If you cancel the holiday
If you choose to cancel, your rights are different and generally weaker. You will usually be bound by the cancellation terms you agreed to, which often mean losing your deposit and, the closer to departure you cancel, a larger portion of the cost. This is where travel insurance matters: if you cancel for a covered reason, such as certain illnesses or emergencies, your insurer may reimburse you. Reading the cancellation policy before booking, and having suitable insurance, protects you if you have to pull out of a trip.
If the company goes bust
If the travel company collapses, your protection depends on how you booked. ATOL covers flight-inclusive packages, ABTA covers many non-flight ones, and paying by credit card may give you a further route to a refund. Our guides on what to do if your travel company goes bust and on ATOL protection explain the steps. In this situation you claim through the relevant scheme rather than the failed company itself, so identifying which protection applies is the key to recovering your money.
The credit card and chargeback route
How you paid can open another door to a refund. If you paid by credit card, you may be able to claim from your card provider if the holiday is not provided, and debit card payments may qualify for chargeback. Our guide on booking with a credit card explains this protection. These routes can be especially useful when a company fails or refuses a refund it owes, so it is always worth considering what your payment method entitles you to alongside any travel scheme.
Travel insurance and personal cancellation
Travel insurance is the main route to a refund when you have to cancel for personal reasons the operator is not responsible for, such as illness, injury or certain emergencies. A good policy covers cancellation, which is why buying it as soon as you book matters, so you are protected from that moment. Check what your policy covers and the claims process. Insurance will not refund you for simply changing your mind, but for genuine covered reasons it can recover costs you would otherwise lose entirely.
How to claim a refund
To claim, act promptly and methodically. Contact the company in writing setting out what you are owed and why, referencing your rights and keeping copies of everything. If the company fails or refuses, turn to the relevant protection: the ATOL or ABTA scheme, your card provider, or your insurer as appropriate. Provide the evidence each requires, such as booking confirmations and payment records. A clear, documented claim, pursued through the right channel, gives you the best chance of getting your money back without unnecessary delay.
If you are refused or in dispute
If a company refuses a refund you believe you are owed, you have further options. For ABTA members, the association offers a complaints and dispute-resolution service, and other routes such as alternative dispute resolution or, as a last resort, the small claims process may be available. Our guide on the difference between ATOL and ABTA covers the schemes. Escalating a dispute through the proper channels, with your evidence in order, is often what finally secures a refund that was wrongly withheld.
Refunds versus credit notes
When a holiday is cancelled, companies sometimes offer a credit note or voucher instead of cash. While you may choose to accept one, you are generally entitled to insist on a cash refund where the rules give you that right, rather than being pushed into a credit you did not want. Credit notes can carry risks if the company later fails. Knowing that you can usually hold out for your money back, rather than accepting a voucher under pressure, is important, especially for larger sums you would rather have returned in full.
How long a refund should take
For cancelled packages, the rules generally require refunds to be paid within a set period, often around a couple of weeks, rather than left open-ended. If a company drags its feet beyond the timeframe the rules allow, that is grounds to chase it firmly in writing and, if necessary, escalate. Keeping a note of when you became entitled to the refund helps you hold the company to the deadline. Knowing roughly how long it should take stops you being fobbed off with indefinite delays on money you are owed.
Keep records to support your claim
Whatever the situation, good records make a refund far easier to secure. Keep your booking confirmation, payment receipts, any ATOL certificate, insurance documents and all correspondence about the cancellation, both digitally and on paper. If you have to claim through a scheme, a card provider or an insurer, they will ask for evidence, and having it ready speeds everything up. A well-documented claim is much harder to refuse or delay, so organised paperwork is one of the most useful things you can have on your side.
In short
To get a refund for a cancelled holiday, first work out who cancelled. If the operator cancels a package, you are usually entitled to a full refund within a set period; if you cancel, you are bound by the terms but may claim on insurance for covered reasons; and if the company fails, you claim through ATOL, ABTA or your card provider. Document everything, pursue the right channel, and escalate disputes if needed. This is general guidance, not legal advice, so check current rules.
Find more booking advice in our Booking & Deals guides.