The introduction of the package holiday revolutionised the travel industry in the second half of the 20th century. Combined with an improved standard of living for most people in the post-war years and the invention of the jet engine, the package holiday was the travel industry's entreprenurial response to society's desire and newfound ability to leave the country for their holiday.

Instead of going to Britain's coastal towns as the Victorians were wont to do, they headed for the Mediterranean and the sangria bar.

A package holiday is like a one stop shop for anyone looking to go away on a conveniently arranged holiday. One payment is made to the tour operator at the time of booking. Reservations include flights and accommodation and in some cases travel to and from the airport and car hire.

Things to be wary of

Although most tour operators won't leave you stranded in the Canaries or book you into a hotel popular with the 18-30s crowd when you want a relaxing break, there are a few particulars to keep in mind before you book.

• Review all details of your package holiday carefully before signing on the dotted line or clicking the submit button. Check out the credentials of the tour company and make sure they belong to The Association of British Travel Agents (ABTA) and if you are flying, they are issued with an ATOL number. An ATOL or Air Travel Organisers Licence number is given by the Civil Aviation Authority (CAA) and protects holidaymakers from rogue tour operators. Ask your tour operator for their ATOL number and check their status on the CAA website. That way if anything happens to go wrong you will have a better chance of getting a remedy or compensation.
  
• Many tour operators book customers into the same holiday accomodation or resort. Make sure you know who your contact person is and the number you should call if something goes wrong.
  
• Travel insurance is an absolute necessity. Coverage varies, so shop around for the right plan for your needs. Basic necessities include: safe guards against flight cancellations, theft of belongings, or loss of belongings, injury or illness.

Getting insured

It is always better to be safe than sorry when it comes to travel insurance, so make sure you don’t go away without it. This is intended to cover you for any eventuality. Usually the travel agency will offer you an insurance deal but banks and financial service organisations can be a good place to start also. The post office also offers their own brand of travel insurance policies.

If you are going on an activity or adventure holiday you may not be covered by a traditional travel insurance policy. Your tour operator or travel insurance company will be able to tell you what policies you should buy for this type of trip.

Please note that if you fall ill whilst on holiday, UK residents are entitled to medical treatment abroad on a free or reduced cost basis if they are in the European Union. However, this is only possible if you have filled out an E111 form available from your post office. Our article on the E111 form explains further what you are entitled to if you are taken ill.

What if something goes wrong?

It is not unheard of to have problems with a package holiday. The flights may get cancelled at the last minute or flights may be overbooked and you could lose out. If your hotel does not match the description outlined in the brochure then you may have a case that can be taken to the Advertising Standards Authority.

If you wish to make a complaint it is best to do so as soon as possible and your case will be stronger if you have evidence, such as photos of the hotel or cancellation papers if the flight was delayed or cancelled.

For more information on package holidays, check out our list of holiday tour operators.