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So, what exactly is a package holiday? It might sound simple – you’ve probably booked plenty of them over the years – but actually, the definition is quite important, especially when it comes to your rights. Here’s what you need to know about your package holiday.

A package holiday is defined as a combination of any two of the following:

• accommodation (a hotel, apartment, villa etc)
• transport (most commonly flights, but trains, coaches and ferries are also included)
• car hire
• another service (for example, a tour that forms significant part of the holiday)

In addition, the package must involve an overnight stay or at least cover a period of 24 hours.

They can also be sold in different ways:

• a holiday that has been pre-put together by a travel agent – for example, flights and accommodation – for a single price
• a tailor-made trip – for example, where you choose from a range of services and pay for them as one

What about payment?

Bear with us, this part can be a little tricky. How you pay for a holiday also plays a big part as to whether it’s a package or not.

So, if you paid a single price in one payment, were charged an inclusive price for all of the services you bought, or agreed to pay for a combination of services that you selected, then it’s a package.

Additionally, if your travel company sold you a service – for example, flights – and then transferred your payment details to another company, with whom you booked another service within 24 hours, this also counts as a package.

And last but not least, a holiday is classed as a package if it was advertised or sold using the term “package” or similar wording.

What is ATOL?

Ever wondered what ATOL – that funny little acronym that appears on most reputable holiday sites – stands for? Well, it’s Air Travel Organiser’s Licence, a financial protection scheme run by the UK Civil Aviation Authority (CAA) that covers package holidays.

Most UK tour operators and holiday companies should have a valid licence. Without it, they might not be able to legally sell air travel. This means that if your holiday company fails – for example, ceases trading suddenly – you are entitled to support and financial cover through ATOL.

Basically, it ensures:

• you don’t get stranded abroad if your holiday company fails while you’re away
• you don’t lose out financially if your holiday company fails before you travel

Rest assured that when you book a package holiday through TravelSupermarket, you are covered by ATOL. We compare thousands of individual package holidays from more than 25 leading travel companies and all of the holiday companies on our site are protected by ATOL.