Package holidays: the rights you have
A package holiday combines at least two travel services bought together and gives the traveller a single point of liability, protection against insolvency, and rights to price reduction or compensation where the services are not provided as agreed.
gelisted editorial team · Updated 15 August 2026
The short version
- A package combines at least two travel services in one contract.
- The organiser answers for the whole package, not each supplier separately.
- Insolvency protection is compulsory for the organiser.
- Unavoidable extraordinary circumstances allow cancellation without penalty.
Booking a flight and a hotel separately and booking them together are not the same thing legally, and the difference only becomes visible when something fails.
What counts as a package
The combination of at least two different travel services for the same trip, such as transport and accommodation, or accommodation and car hire, bought from a single trader or through linked booking processes. Where that condition is met, the organiser answers for the proper performance of the whole package, not merely for the part it supplies directly.
| Situation | Right | Note |
|---|---|---|
| Service not provided as agreed | remedy or price reduction | notify promptly |
| Significant change before departure | accept, alternative or full refund | |
| Organiser insolvency | repatriation and refund | compulsory protection |
| Unavoidable extraordinary circumstances | cancellation without penalty | at the destination |
| Price increase after booking | limited and justified | above a threshold allows cancellation |
| Transfer of the booking | permitted with notice | reasonable costs |
| Compensation for loss of enjoyment | possible | by circumstances |
If something goes wrong at the destination
Notify the organiser or its local representative as soon as the problem is noticed, because they must be given the chance to remedy it. Record what was reported, when and to whom. Photograph the issue. If it is not remedied, the traveller may resolve it themselves and claim reasonable costs, and may claim a price reduction for the period the service fell short.
Insolvency protection
Organisers must hold guarantees covering repatriation and refunds if they become insolvent. It is one of the substantive advantages of a package over separate bookings: if an airline booked directly ceases operating, the traveller is a creditor, whereas within a package the protection applies. The organiser must state how that protection is arranged in the contract.
Keep the contract and the pre contractual information sheet, since both set out these rights explicitly.
Cancelling before departure
The traveller may cancel at any time before departure, paying the termination fee set in the contract, which must be reasonable and stated in advance. And where unavoidable extraordinary circumstances arise at or near the destination that significantly affect the trip, cancellation is permitted with a full refund of payments and no termination fee.
The figures matter when a claim arises. A price reduction is calculated on the proportion of the trip affected, so 3 days of a 10 day package with the pool closed can support a claim of around 30 per cent of the accommodation element. Notify within 24 hours, photograph the issue and keep the contract, since claims are usually resolved within 1 to 3 months.
Two more figures worth holding. Where the organiser raises the price after booking, an increase above 8 per cent of the total allows the traveller to cancel with a full refund. And a booking may be transferred to another person with reasonable notice, usually 7 days before departure, paying only the actual costs of the change.
Two more thresholds are worth knowing. A price increase above 8 per cent of the total allows cancellation with a full refund, and any increase must be notified at least 20 days before departure. The booking may be transferred to another person with reasonable notice, usually 7 days ahead, paying only the actual costs of the change, which typically run 30 € to 150 €.
One last figure: claims of this kind are usually resolved within 1 to 3 months through the consumer route, and the organiser normally has 10 working days to reply to a written complaint.
Frequently asked
+What counts as a package holiday?
The combination of at least two travel services for the same trip bought together or through linked processes.
+Who is liable if something fails?
The organiser, for the proper performance of the whole package rather than only its own part.
+What do I do if there is a problem at the destination?
Notify the organiser or its representative immediately, record it, and allow them to remedy it.
+What happens if the organiser becomes insolvent?
Compulsory protection covers repatriation and refund of payments.
+Can I cancel without penalty?
Yes where unavoidable extraordinary circumstances at the destination significantly affect the trip.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Govern de les Illes Balears, Govern de les Illes Balears (August 2026)