What is a package holiday and what is a linked travel arrangement?

A package is defined by The Package Travel and Linked Travel Arrangements Regulations 2018.

What is a package holiday?

Any type of holiday such as a city break, a beach holiday, a ski trip or even backpacking around the world can be a package holiday. While packages can be ‘ready-made’ by the tour operator, they can also be ‘tailor-made’ to suit each customer’s preferences and budget. 

Essentially, you book a package when you buy two or more travel services together. A package holiday must cover a period of at least 24 hours or involve overnight accommodation and is a combination of at least two different types of travel services, which are listed below:

  • transport (such as a flight, coach or train but not transfers from an airport)
  • accommodation (such as a hotel, villa or apartment)
  • car rental 
  • a tourist service (such as theme park tickets, tours, passes or equipment for sports such as skiing) where this is a significant part of the holiday, either because of its value or because it is an essential part of the trip.

It counts as a package holiday if your travel company:

  • Has asked you to pay a single price through a single payment, or
  • Has let you select a combination of services – such as a flight and accommodation – before you agreed to pay for them, or
  • Charged you an inclusive or total price for all the services you bought, or
  • Advertised or sold the travel services to you as a package or similar term, or
  • Sold you one travel service; and then transferred your details, including your payment details to another company which you then booked another travel service through within the space of 24 hours.

A cruise is a package holiday. 

You can book a package holiday direct with a tour operator or through a travel agent. 

Examples of a package holiday

A travel agent finds a holiday in Portugal for you. You pay a single price and make a single payment for the flights and a villa.

You are booking a trip to Japan through a travel company’s website, you select flights, train tickets and hotels, and are charged a total price.

You ring up a travel company to book a city break to Bath, with a one-night stay in a hotel, the trip includes return coach travel and a ticket to the Roman Baths.

What is a linked travel arrangement?

A linked travel arrangement is a combination of at least two different types of travel services (listed below) – but it is how these travel services are sold which defines it as a linked travel arrangement. 

Types of travel services covered by a linked travel arrangement:

  • transport (such as a flight, coach or train but not transfers from an airport)
  • accommodation (such as a hotel, villa or apartment)
  • car rental 
  • a tourist service (such as theme park tickets, tours, passes or equipment for sports such as skiing) where this is a significant part of the holiday, either because of its value or because it is an essential part of the trip.

It counts as a linked travel arrangement if your travel company sells it to you by:
Arranging the separate selection and separate payment of each of your travel services - such as a flight and accommodation - during a single visit (either to their shop, website or other point of sale). This means you will have separate contracts with the individual travel service providers, or

Arranging for you to make a booking for one travel service (for example a flight) and then arranging for you to be offered, in a targeted manner – such as through a link provided in the confirmation, or by email – another travel service from another trader (such as a car hire firm) which you then book less than 24 hours later. 

Examples of a linked travel arrangement

If you buy a flight through a travel company and, having bought the flight, you then, during the same visit to their shop or the same session on their website, separately book and pay for, or agree to pay for, a hotel.

If you buy a flight and then receive an email from another company for hotel accommodation at the same destination and for the same dates. You then click on the email and end up booking a hotel within 24 hours of booking the flight.

What protection do I get with a package holiday?

A package holiday has both financial and legal protection.

Legal protection means your travel company is responsible for making sure that you get the holiday you paid for. If something isn’t provided or isn’t as expected, and your travel company or its suppliers is at fault, they will need to sort this out for you – either resolving the issue, offering an alternative or providing a full or partial refund. In some instances you may be able to claim compensation.

Financial protection means that if the company you have booked with goes out of business, you should receive a refund if you are yet to travel, or be brought home if you are already on holiday and your package includes return transport. For more information see Is my money protected when I book a trip? [link]

What protection do I get with a linked travel arrangement?

A linked travel arrangement only has financial protection – and this is at a lower level than if you bought a package holiday. The financial protection provides some cover if the company that arranged your linked travel arrangement goes out of business. For more information see Is my money protected when I book a trip?

As there is no legal protection covering the whole linked travel arrangement, any complaints about the provision of the services must be directed to the service providers themselves.

How will I know if I’m booking a package holiday or a linked travel arrangement?

Your travel company should provide you with information, confirming that you’re booking a package or a linked travel arrangement.

If it’s a package you will be told about the key rights you have under the Package Travel Regulations and a link or website address to the Package Travel Regulations should be provided. 

If it’s a linked travel arrangement, you must be given the following information: 

  • You will not benefit from any of the rights that apply exclusively to package holidays 
  • That each service provider will be responsible for the proper contractual performance of that particular service 
  • There is insolvency protection for the failure of the linked travel arrangement facilitator
  • Where you can read the full Package Travel Regulations. This will likely be via a link on the company website or through the company’s terms and conditions.
  • Package holidays