Holiday Cancelled or Travel Firm Collapsed? ATOL, Refunds and Your Rights (UK)

A cancelled holiday — or worse, a travel company going bust — is stressful, but UK protections are strong if you booked the right way. Here is how to recover your money.

If your operator cancels a package holiday

Under the Package Travel Regulations, if the organiser cancels your package, you are entitled to a full refund within 14 days — and, depending on the circumstances and notice given, possibly compensation too. You do not have to accept a voucher or credit note instead of cash if you want the refund.

If the travel company goes bust

• ATOL protection covers most package holidays involving flights. If the firm collapses, ATOL ensures you get a refund (or are brought home if abroad). Check for the ATOL certificate you should have received.
• ABTA provides similar protection for many non-flight packages (coach, rail, cruise).
• If neither applies, a credit card payment over £100 gives you a Section 75 claim; debit cards may allow a chargeback.

Flights and "DIY" trips

If you booked flights and a hotel separately (not as a package), protections differ — an airline collapse is generally not ATOL-covered, so card protection (Section 75 / chargeback) and any travel insurance become your main routes.

How to claim

1. Find your ATOL certificate / ABTA membership / booking confirmation.
2. For a cancellation, demand the cash refund in writing within the 14-day window.
3. For an insolvency, claim through the ATOL/ABTA process; in parallel, lodge a Section 75 or chargeback with your card provider.

A refund letter template

Dear [Operator / Card provider],

Re: Booking [reference] — refund claim

My holiday departing [date] has been [cancelled by you / affected by your
insolvency]. Under the Package Travel Regulations I am entitled to a full cash
refund of £[amount] within 14 days, and/or I claim under ATOL/ABTA and Section 75.

Please confirm the refund and the timescale.

Yours faithfully,
[Your name and contact details]

The golden rule: book packages with ATOL/ABTA cover and pay deposits by credit card. With those in place, even a company collapse rarely means losing your money.