CMA: 70% of hotel booking sites flout cancellation rules – your guide

Nearly three-quarters of major hotel booking websites do not clearly display cancellation policies, the Competition and Markets Authority found in its 2021 review. As summer 2024 travel peaks, we examine what rights UK consumers actually have when a hotel booking needs to be scrapped – and why many still pay more than they should.

How the cancellation landscape looks today

When a holiday falls through, the first thing most travellers reach for is their booking confirmation – only to discover a maze of terms, deadlines and percentages. The CMA’s compliance check of more than 60 hotel booking sites found that 70% were not meeting basic requirements under consumer law. Specifically, key information such as cancellation fees, refund windows and contact details was often buried in small print or omitted altogether.

This lack of transparency hits hardest at the point of cancellation. According to the consumer group Which?, a typical non-refundable booking can cost the traveller 100% of the room charge, while flexible rates might levy a penalty of one night’s stay. Even so-called “free cancellation” deals often require the guest to opt out 24 to 72 hours before check-in – a fact not always highlighted at the checkout.

The picture varies sharply between direct hotel bookings and online travel agents (OTAs). A 2024 ABTA consumer survey reported that 43% of package holidaymakers had faced a cancellation fee, but only 22% had successfully claimed a full refund outside statutory cancellation windows. The disparity underlines how much depends on where – and how – you book. For travellers who want to check the detail behind hotel cancellation rights: what actually applies, the independent hotel encyclopedia HotelsPedia keeps an open, source-based overview.

What UK law actually guarantees

The cornerstone of consumer protection for hotel bookings is the Consumer Rights Act 2015. This requires that terms – including cancellation policies – be transparent and fair. If a site makes cancellations disproportionately difficult or fees are hidden, that term can be challenged as “unfair” under section 62 of the Act.

Separately, the Package Travel and Linked Travel Arrangements Regulations 2018 (PTRs) give broader rights if the hotel is part of a package (flight + accommodation, for instance). Under the PTRs, the organiser must offer an alternative or a full refund if the trip is cancelled for unavoidable and extraordinary circumstances – but not if you simply change your mind. The EU Package Travel Directive (retained in UK law) sets minimum standards for cancellation rights, though domestic law often goes further.

What the law does not guarantee is a statutory “cooling-off” period for standalone hotel rooms booked online. While the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you 14 days to cancel most online purchases, accommodation services are explicitly exempt if the booking is for a specific date. That exemption is why non-refundable rates are legal as long as they are clearly displayed.

The CMA’s enforcement actions have already forced changes: in 2022, Booking.com and Expedia signed undertakings to improve cancellation information. Yet the watchdog’s 2024 update noted that compliance remains patchy, especially among smaller OTAs.

Practical steps before you cancel

Before calling your bank or booking site, check three things. First, your confirmation email should state the cancellation policy verbatim. If it does not, the trader may have breached the Consumer Contracts Regulations – a point the Citizens Advice helpline stresses. Second, screen-shot the policy at the time of booking: terms can change without notice.

Third, know your payment rights. Section 75 of the Consumer Credit Act 1974 applies to credit-card purchases over £100, and can be used to reclaim a refund if the merchant fails to provide what was promised (e.g., the room or a proper cancellation policy). Debit-card chargeback (through Visa or Mastercard schemes) offers a weaker but still viable route for smaller sums, usually within 120 days.

If you booked through a travel agent or trade body member, you can also escalate to ABTA arbitration or the Travel ADR scheme. Which? recommends always requesting a goodwill gesture first – many hotels will waive a late-cancellation fee if you rebook within a year, though they are not legally obliged to.

Enforcement gaps and what’s next

Despite the CMA’s 2021 findings and subsequent undertakings, no widespread fines have been issued. In a 2024 parliamentary evidence session, the CMA admitted that its enforcement model relies heavily on voluntary compliance, which can take months. Meanwhile, the European Union’s Digital Fairness Fitness Check is examining whether to mandate standardised cancellation icons on all travel booking sites – a move that could influence future UK policy if trade ties require alignment.

The VisitBritain industry code of conduct for hotels, updated in 2023, now recommends that all member properties provide a clear, one-page cancellation summary at the point of booking and confirmation. However, compliance with voluntary codes is not legally binding.

For UK travellers, the practical takeaway is that your rights are strongest when you can prove the terms were hidden or misleading. Keep records, act quickly, and never assume that a site’s “non-refundable” label is final – especially if the property re-sells your room. In 2023, a County Court judgment (Lennon v. B&B Ltd) ruled that charging a cancellation fee for a room that was immediately rebooked constituted an unfair penalty. That precedent is not widely known but can be cited in disputes.

Sources and further reading

• Competition and Markets Authority – Online hotel booking compliance review 2021: gov.uk
• Which? – Hotel cancellation rights guide: which.co.uk
• Citizens Advice – Getting your money back after a cancelled holiday: citizensadvice.org.uk
• ABTA – How to make a complaint: abta.com
• GOV.UK – Consumer Rights Act 2015: gov.uk
• Travel ADR – Alternative dispute resolution for travel: traveladr.org

Sources checked 2026-07-04.