Before you book a holiday, carefully read any terms and conditions on the contract to understand any costs you may incur if you need to cancel your booking.  

A business does not have to give you a refund or other form of compensation if you cancel a booking because you change your mind, booked the wrong product (such as a tour or accommodation) or found it cheaper somewhere else. The business may have a policy that allows you to make changes, although they may charge a fee for this. See Terms and Conditions for more information.

You should also take out travel insurance when you book your holiday. The contract or insurance may allow you to get some or all your money back if you have to cancel your holiday due to unforeseen circumstances, such as illness.