The tour operator has said that Britons can now change the hotel and destination.
This includes bookings that have been impacted by the coronavirus pandemic.
Thousands of Britons had to shelve their holiday plans earlier this year after the pandemic forced the country into lockdown.
The lockdown imposed strict rules on international travel which meant thousands of holidays had to be cancelled or postponed.
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TUI’s new policy will apply to bookings made between July 23 and September 30 this year for travel between August 20 this year until April 30 2021.
This means that any holidays in the future impacted by more outbreaks of the virus, can be changed for another date for free.
Currently, countries such as Spain, Greece and Italy are all experiencing local outbreaks.
None of the countries have, as of yet, implemented a second national lockdown.
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The second booking amendment must be made at least 28 days before their departure.
Richard Sofer, commercial director, TUI UK & Ireland said: “We are in extraordinary times with circumstances that are constantly evolving, and we know we need to be adaptable.
“We’ve listened to our customers and understand some are feeling apprehensive about travelling at the moment, but still want to book in a holiday to have something to look forward to.
“I’m confident our new flexible amends policy will give customers the peace of mind they need to book a holiday knowing that they can change it if, for whatever reason, they decide they want to go somewhere different or delay their trip.
TUI: TUI’s new policy will apply to bookings made between July 23 and September 30
“It’s been more than four months of not taking people on holidays, so we’re excited to offer more flexibility so our customers can make the most of what’s left of the summer.”
TUI has also recently slashed its prices for package holidays in August by a whopping £200.
There are around 140 hotels to choose from with the offers available for at least one week.
Some of the top package holidays on offer include seven nights all inclusive in Costa Teguise, Lanzarote in Spain for £477 per person for seven nights.
Obzor in Bulgaria for £511 per person for seven nights, Puerto de Santiago, Tenerife, Spain for £521 per person for a seven night stay, Cala d’Or, Majorca, Spain for £550 per person and Faliraki, in Rhodes, Greece for £552 per person.
International travel post-lockdown
Most the destinations have a code on them which allows customers to save £200.
TUI has also decided to offer its UK customers free travel insurance for the rest of the year to cover any costs incurred by coronavirus.
TUI says it will cover the cost of testing for suspected cases, medical expenses for anyone who catches coronavirus, and food and accommodation for anyone who is expected to go into quarantine while on holiday abroad.
The insurance will also cover the return flight if a customer is forced to extend their stay after being asked to self-isolate.
They will also be covering anyone who has to repatriate for medical reasons.