Package Holiday or Not?

JourneyMan

Hi All,
My family are due to go in Iceland in April. The trip was booked months ago through Travel Republic. After paying, I was told that our airline (Icelandic Air) had cancelled the inbound flight, so we paid for an additional night. I have now been told that all flights from our chosen airport have been cancelled.
When I asked for a full refund for the trip (comprising flights, accommodation, transfers, excursions and insurance), I was told that I was only eligible for a full refund for the flights as this was not a package holiday. I am unsure how this cannot be a package holiday since I have only paid and had contact with Travel Republic.
Also, wouldn't the insurance policy cover this anyway?
Thanks for reading,
John

Caz3121

From the Travel Republic website
Travel Republic is a travel search website acting as agent only. Each product (e.g. flight, hotel or car hire) has its own price independent of any other products booked at the same time and creates a separate contract directly between you and the provider of that product. Travel Republic champions value, choice and flexibility and does not sell, organise or arrange package holidays.