Package holidays are a popular way to travel, offering flights, accommodation, and other services in one convenient booking. However, when something goes wrong with the flight, many passengers are unsure what their rights are — especially when it comes to compensation.

A common source of confusion is whether EU261 applies to flights booked as part of a package holiday, or whether only the tour operator is responsible. Some travellers assume that booking a package means giving up their flight compensation rights, but that’s not the case.

In this article, we explain when EU261 applies to package holidays, how flight compensation rules work alongside the Package Travel Regulations, and who you should claim from when your package holiday flight is delayed, cancelled, or overbooked.

What Is a Package Holiday?

A package holiday is a trip where two or more travel services are sold together as a single booking for the same trip or holiday. This usually includes a flight and accommodation, but it can also involve extras such as airport transfers, car hire, or excursions.

Package holidays are different from a flight-only booking, where you purchase just the airline ticket and arrange accommodation or other services separately. If you book a flight and hotel on different websites or at different times, it’s usually not considered a package holiday.

This distinction matters because different laws apply. EU261 protects passengers against flight disruptions like delays, cancellations, and denied boarding, while Package Travel Regulations protect the overall holiday, including hotels and transfers.

When you book a package holiday, both sets of rules can apply at the same time — but to different parts of your trip.

What Is Regulation EU261?

EU Regulation 261/2004, commonly known as Regulation EU261, is a passenger rights law designed to protect travellers when flights are disrupted. Its main purpose is to ensure airlines treat passengers fairly and provide compensation and assistance when delays, cancellations, or boarding issues occur.

EU261 covers several types of flight disruptions, including:

• Flight delays (usually when you arrive 3 hours or more late at your final destination)
• Flight cancellations, especially when they happen at short notice (called ‘last-minute flight cancellations’)
• Denied boarding due to overbooking

To be eligible under EU261, certain conditions must be met. The flight must be covered by the regulation (for example, it departs from an EU/EEA airport or is operated by an EU airline), the disruption must be the airline’s responsibility, and the passenger must have a valid ticket and have checked in on time.

EU261 also states that during airport delays caused by a flight disruption, passengers have the right to care, such as meals, refreshments, and accommodation where necessary. If you have to wait at the airport for at least 3 hours, you are entitled to care from the airline.

In the case of a flight cancellation, passengers also have the right to choose between a full refund or rebooking on an alternative flight (also called rerouting).

Does Regulation EU261 Apply to Package Holidays?

Yes — EU261 still applies to the flight part of a package holiday. Booking your trip as a package does not take away your flight compensation rights.

Even if your flight is sold together with a hotel, transfers, or other travel services by a tour operator, the airline operating the flight remains responsible for flight-related disruptions under EU261. This means you may still be entitled to compensation for delays, cancellations, or denied boarding, as well as the right to care, a refund, or rebooking.

In short, the type of booking doesn’t matter — if the flight meets EU261 conditions, your passenger rights still apply, even on package holidays.

Who Is Responsible: Airline vs Tour Operator?

The airline is responsible under EU261 for all flight-related issues.

This includes flight delays, cancellations, denied boarding, and any compensation or care owed under EU passenger rights rules. If your package holiday flight is delayed or cancelled due to the airline’s fault, the compensation claim must always be made directly to the airline operating the flight, not the tour operator.

The tour operator, on the other hand, is responsible under the Package Travel Regulations for the overall holiday package. This covers accommodation, transfers, excursions, and making suitable alternative arrangements if part of the package cannot be provided. They may also be responsible for offering a partial or full holiday refund if the trip is significantly disrupted.

Passengers often claim from the wrong party because package holidays involve one booking but two different legal frameworks.

What You Can Claim Under Regulation EU261 on a Package Holiday?

Even if your flight is part of a package holiday, Regulation EU261 still gives you clear rights when the flight is disrupted. These rights apply to the flight portion of your package and must be provided by the airline.

• Flight delay compensation. You may be entitled to compensation if you arrive at your final destination 3 hours or more late and the delay was the airline’s responsibility.
• Flight cancellation compensation. If your package holiday flight is cancelled less than 14 days before departure and the airline is at fault, compensation may be payable in addition to a refund or rebooking.
• Denied boarding compensation. If you’re denied boarding due to overbooking, you may be entitled to compensation, even if the flight was part of a package deal.
• Right to care. During long delays (3+ hours) or cancellations, the airline must provide meals, refreshments, hotel accommodation (for overnight waits), and transport between the airport and hotel.
• Refund for a cancelled flight. If your flight is cancelled and you choose not to travel, you have the right to a full refund of the flight portion of your package.
• Rerouting. Instead of a refund, you can choose to be rebooked on an alternative flight to your final destination at no extra cost.

Flight Refund Requested — What Happens to Your Package Holiday?

If your flight is cancelled and you choose not to travel, what happens to the rest of your booking depends on how you booked your trip.

If it was a package holiday, the Package Travel Regulations apply, and the tour operator is responsible for the entire package. In many cases, a flight cancellation allows you to cancel the whole holiday and receive a full refund, including the hotel and transfers.

If you booked the flight and accommodation separately, the airline will refund only the flight, while refunds for the hotel and other services depend on their individual cancellation policies or travel insurance.

Yes, you are still protected under EU261 on package holidays.

Featured photo by Quang Nguyen Vinh from Pexels