Theodore ManningHays Travel, the UK's largest independent travel agent, reported a 9% year-on-year drop in bookings on 17 March 2026, with chair Dame Irene Hays citing the ongoing Middle East conflict as a key factor. As travel industry uncertainty grows, here is exactly what UK holidaymakers need to know about their legal rights.
What Hays Travel's Figures Tell Us
On 17 March 2026, Dame Irene Hays appeared on BBC Radio 4's Today programme to share Hays Travel's latest trading figures. The message was stark: the company, which employs over 1,800 people across more than 450 shops and was widely celebrated for saving Thomas Cook staff when the giant collapsed in 2019, had seen bookings fall by 9% compared to the same period last year.
The stated cause: persistent consumer anxiety linked to the conflict in the Middle East, which has rippled across popular destinations in the eastern Mediterranean, Red Sea cruise routes, and even affected booking confidence for seemingly unrelated long-haul trips.
Hays Travel is not alone. The travel industry across Europe has been grappling with a volatile year: geopolitical instability, airline disruptions, and economic uncertainty have created a booking environment where consumers increasingly want flexibility — but aren't always sure what protection they actually have.
What Are Your Legal Rights When Booking a Holiday?
Whether you book through Hays Travel, an online aggregator, or directly with an airline and hotel, your rights differ significantly depending on how you book.
Package holiday protection (the strongest option):
Under the Package Travel and Linked Travel Arrangements Regulations 2018 (which implement the EU Package Travel Directive into UK law post-Brexit), a package holiday must include at least two of the following, sold together at an inclusive price: transport, accommodation, car hire, or other tourist services.
If your package holiday is cancelled by the operator, you are entitled to:
- A full refund within 14 days
- An alternative package of equivalent or higher quality
- Compensation in some cases, depending on the cause of cancellation
If you wish to cancel, you can do so without penalty if there are "unavoidable and extraordinary circumstances" at your destination — such as an armed conflict, natural disaster, or significant public health emergency. This is a legal right, not a matter of goodwill.
Flight-only bookings (less protection):
Under UK261 (the retained EU regulation on flight passenger rights), if your flight is cancelled by the airline, you are entitled to a full refund or re-routing. However, you have no automatic right to cancel in advance if you simply decide not to travel due to concerns about the destination.
Hotel-only bookings:
These are governed by the hotel's own terms and conditions. Always check the cancellation policy before booking, and prefer hotels offering free cancellation, especially in periods of uncertainty.
ATOL Protection: What It Covers and What It Doesn't
ATOL (Air Travel Organiser's Licence) is a UK financial protection scheme managed by the Civil Aviation Authority. If your ATOL-protected holiday company ceases trading, the scheme will either provide you with a refund or, if you are already abroad, arrange for you to complete your holiday and return home.
However, ATOL is narrower than many consumers think:
- It covers flight-inclusive packages only
- It does not cover flight-only bookings made directly with airlines
- It does not cover accommodation-only bookings
- The ATOL certificate must be issued to you — keep it
When you book through Hays Travel, they are required to issue an ATOL certificate if your booking qualifies. If you don't receive one, ask for it explicitly. It is not optional.
What to Do If Your Travel Company Collapses
The Thomas Cook collapse in 2019 — which Hays Travel famously helped rescue — stranded hundreds of thousands of UK holidaymakers. Here is what to do if a travel company fails while you have an outstanding booking:
- Check your payment method. If you paid by credit card, Section 75 of the Consumer Credit Act 1974 means your card issuer is jointly liable with the merchant for purchases between £100 and £30,000. This is one of the strongest consumer protections available and often faster than other routes.
- Check your ATOL certificate. Contact the CAA directly if the company held ATOL protection.
- Check your travel insurance. Many policies include supplier failure cover — read the terms carefully to see what is included.
- Contact your bank for a chargeback if you paid by debit card and the service wasn't delivered.
When to Speak to a Consumer Rights Solicitor
Most straightforward disputes — a missed flight, a hotel that doesn't match its description, a refused refund — can be resolved through the tour operator's complaints process, the Competition and Markets Authority (CMA), or an alternative dispute resolution (ADR) scheme such as ABTA arbitration.
However, there are circumstances where legal advice becomes genuinely necessary:
- The amount in dispute is significant (typically over £5,000)
- The operator is denying liability despite a clear legal entitlement
- You have suffered measurable losses beyond the trip itself (e.g. medical costs from accommodation-related illness, lost business income)
- The company appears to be stalling or operating unfairly
A solicitor specialising in consumer law or travel law can assess your case quickly and advise whether a formal legal claim is worth pursuing. On many platforms including Expert Zoom, you can get an initial consultation without committing to full representation.
Travelling in 2026: Practical Steps to Protect Yourself
Given the current travel environment, here are practical steps every UK holidaymaker should take before booking:
- Book package holidays where possible — the protection is considerably stronger
- Use a credit card for the deposit at minimum — this activates Section 75 protection
- Check the FCDO travel advisory for your destination before booking and before departure
- Buy travel insurance at the time of booking, not just before departure — it may cover events that occur between booking and travel
- Read cancellation terms carefully and take screenshots of what was advertised
The 9% bookings drop reported by Hays Travel reflects real consumer anxiety. But anxiety alone is not a reason to cancel — knowledge of your rights is.
Find a consumer rights lawyer or travel law specialist on Expert Zoom to discuss your situation today.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For specific legal questions about a travel dispute, please consult a qualified solicitor.
