Holidaymakers who book trips online will soon get greater protection if something goes wrong.
More types of holidays will be covered by consumer rules under the new measures coming into force in July, the Government said.
Travel industry body Abta believes half of holidays are currently not financially protected if a company fails.
New rules will “help close this gap”, according to the Department for Business, Energy and Industrial Strategy.
Consumer minister Andrew Griffiths said: “When we book a package holiday we expect it all to go according to plan, but if a company goes bust it can ruin more than just the holiday, leaving people out of pocket or even stranded.
“These new rules mean that internet explorers can book their holidays online, secure in the knowledge they will be compensated in the same way as someone who booked their holidays through a travel agent if something does go wrong.”
Package holidays - when travel and accommodation are booked together - carry legal protection, such as the right to a refund if bad weather stops a holiday from happening.
More types of holiday bookings will be classed as packages under the new rules.
Abta chief executive Mark Tanzer said: “Package holidays offer the best form of protection: not only are you entitled to a refund or to be brought home should your travel company go out of business, but you also benefit from additional legal protection.”