Package Holidays & Cancellation Fees – Your Rights and Options
Here you’ll find tips, guidance, and legal insights related to cancelling your trip:
Information on cancellation fees for package holidays and how to reclaim them risk-free, instructions on how to cancel your vacation, withdrawal rights in cases of extraordinary circumstances (e.g. COVID-19, wildfires, etc.), compensation for loss of holiday enjoyment, travel law, cancellation costs, travel warnings, sample letters, cancellation deadlines, travel cancellation insurance, and much more.
Basic Information on Cancellation Fees After Withdrawing from a Package Holiday
We are pleased to refer you to an article by our long-standing partner law firm, written by one of the most renowned travel law specialists, attorney Holger Hopperdietzel: https://www.anwalt.de/rechtstipps/stornokosten-nach-ruecktritt-vom-pauschalreisevertrag-239337.html
Many travellers are familiar with the situation: the package holiday is booked, the deposit has been paid – and then an unforeseen event occurs that makes cancelling the trip necessary.
Withdrawal from the package travel contract—referred to by legal professionals as a declaration of cancellation—almost always results in the tour operator charging substantial cancellation fees.
But what happens to the cancellation fees? Does the traveller always have to pay them, and is the amount of the cancellation charges always justified?
Cancellation Fees in Package Travel Law: Legal Foundations
Under package travel law, travellers are permitted to withdraw from the contract at any time before the start of the trip—without having to provide a reason.
The legal consequence of such withdrawal is that the tour operator loses the right to claim the full travel price and must refund any deposit already paid. However, the operator may demand a cancellation fee (known as withdrawal compensation), which must be reasonable in amount.
Calculation of Cancellation Fees: Two Methods
The tour operator generally has two options for calculating cancellation fees:
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Specific Calculation: The tour operator deducts the saved expenses based on the travel price and takes into account any financial benefits gained from reselling the travel services. The remaining amount constitutes the cancellation fee that the operator is entitled to charge.
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Flat-Rate Cancellation Fees: The common practice is to apply a fixed compensation amount that increases depending on the timing of the cancellation—the closer to the departure date, the higher the fee.
In some cases, cancellation fees of up to 95% of the total travel price are charged. However, this requires a corresponding provision in the tour operator’s General Terms and Conditions (GTC). Even flat-rate cancellation fees must be reasonable in amount.
Validity of Flat-Rate Clauses
Provisions in the General Terms and Conditions (GTC) only become part of the contract if they have been validly incorporated.
In practice, incorporating GTC into travel contracts often proves difficult. The effectiveness of such incorporation frequently fails due to the strict legal requirements set forth by law.
However, even if the GTC clauses have been validly incorporated, the applicability of the flat-rate cancellation clause often fails due to its substantive validity, particularly if it lacks fairness.
GTC clauses must not result in an unreasonable disadvantage to the consumer.
Switch from Flat-Rate to Specific Calculation of Cancellation Fees
If the provision for calculating flat-rate cancellation fees proves to be invalid, tour operators often switch to calculating the actual damage in order to enforce at least part of the cancellation costs. This switch has not been challenged by the courts so far, as package travel law allows both methods. However, the transition from flat-rate to specific calculation raises concerns due to European regulations and the case law of the Court of Justice of the European Union (CJEU).
How Can NoShow and Advocatur Wiesbaden Help You?
With many years of experience in reclaiming cancellation fees, NoShow, in cooperation with Advocatur Wiesbaden, offers a detailed review of the cancellation charges and a well-founded assessment of whether reclaiming the fees is likely to be successful. In many cases, cancellation fees have already been successfully recovered—sometimes even the entire amount.
If you do not have legal protection insurance, NoShow Consumer Travel Rights GmbH, acting as a litigation funder (www.ruecktritt.eu), will finance your case against the tour operator—led by Advocatur Wiesbaden—and assume the litigation risk.
NoShow also covers the deductible of your legal protection insurance in exchange for a reduced success fee, allowing you to assert your rights completely risk-free.
For advice on claims related to all types of travel, NoShow—together with Advocatur Wiesbaden, the specialist law firm for travel and aviation law (www.reiserechtsexperte)—is gladly at your disposal.
With nearly 30 years of expertise in travel and tourism law, our cooperation partner, Advocatur Wiesbaden, offers an optimal level of legal experience.
Thanks to modern means of communication, optimal representation is ensured even over long distances between clients, the law firm Advocatur Wiesbaden, and the litigation funder/legal service provider NoShow. Processing and communication take place almost exclusively online, with coordination also possible by phone.
Average Amount of Cancellation Fees for Package Holidays
The flat-rate fees listed below are often found by courts to be excessive and therefore unreasonable . This does not, of course, apply universally to all trips or tour operators. Please note that the amount of the flat-rate fee is not legally defined or capped. Each operator may set a cancellation fee based on the average damage incurred due to the traveller’s withdrawal (e.g. actual costs for accommodation and flights). Special types of offers, such as X-travel or dynamic packaging, are also relevant.
Up to 30 days before departure: 30 % of the travel price
29 – 22 days before depareture: 45 % of the travel price
21 – 15 days before departure: 65 % of the travel price
14 – 7 days before departure: 80 % of the travel price
ab 6 days before departure: 85 % – 100 % of the travel price
(Values are based on an average for a flight package holiday—for example, 10 days in Mallorca including flight and hotel at a package price. The data used is derived from the current general terms and conditions of Germany’s leading tour operators.)
A subsequent review by NoShow can prove financially worthwhile in the form of a refund of excessive cancellation fees. NoShow will gladly examine your case free of charge.
You will always find the terms and conditions / cancellation policies applicable to your trip in your travel documents. These were either sent to you by email during the booking process or handed to you personally when booking at a travel agency.
You can view these at any time online on the tour operator’s website.
Information provided without guarantee.
Tips Before Cancelling and Measures to Reduce Costs
- Due to current global events, some tour operators now offer free rebooking or cancellation options. Be sure to check with your tour operator before cancelling, and consult the Federal Foreign Office’s travel and safety information for updates: https://www.auswaertiges-amt.de/de/ReiseUndSicherheit/reise-und-sicherheitshinweise
- Individual travelers can also cancel (e.g. as part of a smaller group trip).
- Cancel your trip as early as possible after becoming aware of the event preventing travel.
- The earlier the trip is cancelled before the departure date, the lower the cancellation fees will be.
- If there is sufficient time before the start of the trip, it is also possible to transfer or sell your trip to other individuals. However, in such cases, rebooking and name change fees are usually charged by the tour operator. Please check with your travel agency and directly with the tour operator. This option is often more cost-effective than cancelling the trip.
Information provided without guarantee.
Trip Cancelled Shortly After Booking – Cancellation Fees Still Apply!
- Please note that when booking a package holiday, unlike ordering goods online, you do not have a right of withdrawal. The reason for this is a different type of contract for travel bookings than for online orders of goods. Accordingly, cancellation fees are generally incurred, regardless of whether you declare your withdrawal a few minutes, hours, days or even many weeks before the start of the trip. Be sure to coordinate this with your tour operator in advance, if necessary, any goodwill solutions are possible.
Information provided without guarantee.
Already Cancelled Your Trip? – Check Your Refund Eligibility with Us!
If you have already cancelled your trip, paid high cancellation fees, and/or your travel cancellation insurance does not apply, NoShow will review your case. NoShow will gladly review your case for a possible refund—even retroactively for up to three years (limitation period).
On what basis can NoShow – ruecktritt.eu do this?
- The amount of cancellation fees charged must be reasonable—however, this is often not the case!
- Cancellation policies / percentage-based flat fees are often set too high—even if you have accepted the terms and conditions.
- Savings made by the tour operator when a trip is cancelled are often not passed on to the customer (e.g. hotel, transfer service, flight booking).
- In some cases, we were even able to recover up to 78%—and under certain conditions, even 100%—of the cancellation fees for our clients retroactively.
- Claims can even be made retrospectively for 3 years
- No travel cancellation or legal protection insurance necessary!
- No upfront costs or risk for you
Check your claim here free of charge:
Check your entitlement to a refund of cancellation fees free of charge with NoShow
Are There Ways to Cancel the Trip Free of Charge? (Extraordinary Circumstances)
Important information regarding cancellation due to unavoidable extraordinary circumstances (volcanic eruptions, landslides, floods, etc.):
You may have the option of withdrawing from the travel contract free of charge:
- It is important to monitor the relevant circumstances at the destination. However, there could still be the possibility of a free cancellation if at the time of travel extraordinary circumstances, e.g. a travel warning issued by the Federal Foreign Office for the destination was in place. This could support the claim for a retroactive refund of cancellation fees. Country-specific information can be found on the website of the Federal Foreign Office: https://www.auswaertiges-amt.de/de/ReiseUndSicherheit/reise-und-sicherheitshinweise
- Due to the dynamic global situation, some tour operators now offer free rebooking or cancellation options (please check directly with your tour operator).
Further options:
- Significant changes to the itinerary made by the tour operator:
- Change or postponement of the departure or return flight by several days, or a change of airport (however, flight time changes of just a few hours do not constitute grounds for a free cancellation of a travel contract).
- A different, but not equivalent hotel is offered (e.g. due to overbooking).
The tour operator is therefore obliged to fully refund the travel price within 14 days. In some cases, this may also give rise to a claim for additional compensation due to wasted vacation time or lost holiday enjoyment
Information provided without guarantee.
Where, How, and When Can I Cancel My Trip?
You can cancel a trip at any time. This is usually possible via email, in writing, by fax, or even by phone.
- Directly through the travel agency where you made your booking. This also includes online travel agencies, such as comparison portals.
- Directly with the tour operator. This is the safest way to ensure your cancellation is processed as quickly as possible. You can find the operator’s contact details in your travel documents.
In Which Cases Does My Travel Cancellation Insurance Apply?
- Accident or unexpected, serious illness
- Vaccine intolerance
- Pregnancy
- Death of a close relative
- Unemployment
Note: Cancelling a package holiday due to personal safety concerns related to the coronavirus is excluded from your insurance provider’s obligation to cover costs.
Please note that most insurance policies cannot be taken out after the travel contract has been concluded.
For most insurance plans, you are required to pay a so-called deductible in the event of a claim. This could be, for example, €150 per person or a flat rate of 20% of the total damage amount or cancellation fees.
For more detailed information, please refer to your insurance policy terms and conditions.
Most insurance providers now offer online claims reporting, allowing you to submit all relevant information and upload supporting documents. Be sure to check your insurer’s website for specific instructions and requirements.
Information provided without guarantee.
I Don’t Have Travel Cancellation Insurance or Legal Protection Insurance – What Now?
- 44% of travelers also do not have travel cancellation insurance, and a large portion likewise lack legal protection insurance — but with NoShow, that’s no problem!
- After a cancellation has been made, NoShow can review the case with this service as Germany’s first provider of its kind, since flat-rate cancellation fees are often calculated excessively.
- NoShow always works for you without any cost risk, covering the entire legal process risk—including lawyers, court fees, and more—and enforces your rights based on a success-based commission (only in the event of a successful outcome). Your cancellation fees were high enough — we’ll take care of the remaining cost risk for enforcement!
- NoShow can reduce your cancellation fees to the legally permitted minimum. In some cases, this has retrospectively amounted to up to 100%* of the cancellation costs.
- You can easily assert claims retroactively for up to three years.
Check your claim here free of charge:
Check your entitlement to a refund of cancellation fees free of charge with NoShow
Insolvency of the FTI Group and Your Rights
We too were surprised by the insolvency filing of the FTI Group as reported in the media, since we had assumed that the company would be rescued and its operations continued with the support of the new investor group. Accordingly, we were still in negotiations with the tour operator, their legal department, and legal counsel in numerous cases as recently as last week.
Further details on the insolvency: Tagesschau report from June 3, 2024
So far, little is known about the future and the consequences of the company’s insolvency. This will only become clear in the near future. According to media reports, trips scheduled to begin soon are expected to be cancelled.
We are therefore currently unable to support you in asserting claims against FTI for the reimbursement of excessive cancellation fees or for compensation claims, such as those due to wasted vacation time. The latter is unlikely to succeed due to the insolvency and financial situation of the company, as such claims are unlikely to be settled.
For existing travel bookings that have not yet begun: Your advance payments are secured by the German Travel Security Fund, established in 2021. In the event of a tour operator’s insolvency, the fund handles the reimbursement of prepayments, the return transport of stranded travelers if necessary, and their accommodation until repatriation.
Link to the German Travel Security Fund for assistance with current trips: https://drsf.reise/
Do not cancel your existing travel bookings on your own at this time, as doing so may result in your deposit being offset against cancellation fees. If the trip cannot be carried out, the tour operator will have to cancel it shortly anyway. This way, the protection provided by the German Travel Security Fund’s package travel protection certificate will apply.
For travel bookings cancelled within the past three years: Due to the unpredictable developments, we are currently UNABLE to accept or process any FTI cases (FTI, BigXtra, 5vorFlug, FTI Cruises), as the prospects of success remain entirely unclear. In certain circumstances, a settlement may be reached and potential claims fulfilled at a reduced rate if the company is rescued. In the event of full insolvency, claims must be filed with the insolvency administrator. Where and how this will be done, and at what rate such claims may be settled after the conclusion of the insolvency proceedings (which can typically take several years), will be announced in the coming weeks and months.
We are still happy to assist you in enforcing claims against other tour operators.
What If the Tour Operator Cancels My Trip? Is Compensation Available?
The tour operator may cancel the trip for the following reasons or conditions without any entitlement to compensation on your part:
- Minimum number of participants not reached
Notification periods of the tour operator pursuant to § 651 h IV Nos. 1 a–c of the German Civil Code (BGB):
Up to 20 days before the start of the trip for travel durations of more than 6 days (a)
Up to 7 days before the start of the trip for travel durations of 2 to 6 days (b)
Up to 48 hours before the start of the trip for travel durations of less than 2 days (c)
If these deadlines are not met, it may be possible to claim damages against the tour operator. If a cancellation is made several months before departure due to a “minimum number of participants not reached,” this reason is hardly credible. A review by NoShow would be advisable.
- Unavoidable, extraordinary circumstances
This includes, for example, natural disasters, unexpected political and social unrest, and travel warnings issued by official authorities (e.g. due to a pandemic such as the coronavirus).
Must be declared immediately before the start of the trip and upon becoming known to the tour operator.
> Overbooking by a service provider (e.g. airline or hotel) does not constitute an extraordinary circumstance.
Other reasons are not permitted, and the traveler may be entitled to claim damages.
This may amount to up to 50% of the travel price in addition to a full refund — and in exceptional cases, even 75% or 100% of the travel price!
Check your claim here free of charge:
https://www.ruecktritt.eu/veranstalter-storniert-pauschalreise-schadensersatz/
Information provided without guarantee.
A little guide to assist you with your cancellation.
If you are looking for help with phrasing a travel cancellation (flights and package holidays):
https://www.verbraucherzentrale.de/musterbriefe/reise-mobilitaet
So that you have the right words quickly and easily at hand for your standard cancellation, NoShow offers you the following template:
Subject:
Cancellation of Package Holiday – Booking Number: (Your booking or reference number)
Email Body:
Dear Sir or Madam,
I/we hereby cancel in full the trip booked with you on (date of booking) under the booking number: (booking or reference number), and hereby declare our withdrawal from the travel contract in accordance with Section 651 h (1) Sentence 1 of the German Civil Code (BGB).
The withdrawal is declared for the following individuals: (Please list each person by name)
If you wish to cancel the trip for only a portion of the travelers, please list the names of those individuals whose bookings are to be cancelled.
Unfortunately, the trip cannot be undertaken due to (state the reason; in some cases, the tour operator may cancel the trip as a gesture of goodwill at a reduced cancellation rate).
I/we kindly request that any payments already made be refunded within 14 days, minus a reasonable compensation, to the original method of payment (in the case of credit card), or alternatively to the bank account specified with account holder name, IBAN, and BIC.
Depending on the type of travel, the timing of the withdrawal prior to departure, the amount of saved expenses, and the expected alternative income from resale, tour operators are required to calculate reasonable cancellation fees to reflect appropriate compensation. We therefore request that you provide a justification for the amount of your cancellation fee in order to avoid potentially excessive cancellation cost payments.
Kind regards,
Last name, First name
Street, House Number
Postal Code, City
Phone number (for inquiries)
Copy the subject line and the body of the message, replace the placeholders with your personal details, and send it to the tour operator via email!
You can find the relevant email address on your booking documents — it is usually something like kundenservice@… or service@…, depending on the tour operator.
You will usually receive confirmation of the cancellation and a cancellation invoice from the tour operator within a short period of time.
If you do not have travel cancellation insurance, you are welcome to submit the case to us for review.
