The new rules ensure people who book holidays online through travel sites enjoy the same rights as those who book with a traditional travel agent

The definition of package holiday has been broadened to capture modern booking models such as online and via mobile.

Online sites which enable consumers to put travel packages together will now be responsible for the entire holiday, even if services are performed by third parties.

Some 83% of Brits booked a holiday online in 2017 compared to 76% in 2016. According to ABTA, the Travel Association, changes to how we book travel – such as using online booking sites – have created a gap in consumer protections, with 50% of holidays not currently financially protected if a company fails.

Business Minister Andrew Griffiths said: “Britain is a nation of travellers and we each put aside around £23.10 per week to go towards package holidays. Given that commitment, when we are booking holidays it is reasonable for all of us to expect that if something goes wrong we are protected financially.

“The measures will ensure holidaymakers are properly compensated if things do go wrong, removing the risks for consumers and building on our long, proud history of high standards when it comes to travel protections.”