Free sale, also written freesale or free sell, has no legal definition. VisitEngland’s inbound tourism toolkit describes it as rooms, seats or vehicles provided to a wholesaler or inbound tour operator in unrestricted quantities until the supplier indicates otherwise, so that a booking can be confirmed to the client immediately. The Edinburgh Tourism Action Group adds that it removes the need for an enquiry for each booking.

How it differs from an allocation

• Under an allocation, the supplier holds a set number of rooms or seats for the operator, and unsold units go back on the release date.

• Under free sale, no block is held. The operator sells, confirms to the customer and reports the booking to the supplier.

• The supplier can stop sales or close out dates, for example when it is full.

In a 2006 draft of their joint industry terminology, New Zealand’s hotel and inbound tour operator councils described free sell as letting the operator confirm rooms without seeking confirmation from the hotel, which was bound to honour the booking. Their guidance said a stop sell should not be enforced until the operator had acknowledged it. Terms like these are set by each contract.

Why it matters for travel businesses

If you sell a free-sale room in a package and the hotel does not provide it, the Package Travel Regulations make the organiser liable to the traveller for the services in the package, whoever was due to provide them. It is worth checking how your contracts define stop sales, how notices reach you and which bookings the supplier must honour.