Holiday from hell? How to claim compensation

http://www.theguardian.com/money/2014/sep/06/holiday-hell-compensation-claim-summer-break

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You arrive at your hotel to find the pool’s out of action for the next two weeks, or that there’s a building site next door with drilling starts at 7 each morning – just hours after the nearby nightclub stops pounding.

TV series have been made about holidays from hell with good reason, and the latest figures show how the problem refuses to go away. Citizens Advice says in July alone, a record 28,000 people having holiday problems logged on to its advice pages – with a quarter of them actually on holiday at the time. In the past year the charity helped more than 200,000 consumers online whose holiday had not lived up to its billing. Those holidaying in the US were the most likely to seek advice during their vacation – by some margin. So if your holiday goes seriously wrong, what are your rights?

What you can claim for

No court will award you compensation if you simply chose badly, you didn’t like the holiday, or the weather was terrible – it all comes down to whether the firm delivered the holiday promised in the contract. Citizens Advice says claims can usually be broken down into three areas:

Loss of value This should represent the difference in price between the holiday you paid for and what you got. So, for example, if you were moved to a cheaper hotel because of overbooking, you should claim the difference in price between the two hotels. If you spent two days sorting out a problem, you can claim the value of the days your holiday was ruined doing this. If you were on a package holiday, you should deduct the cost of flights before you work this out – usually estimated to be at least half the total cost of the package.

Out-of-pocket-expenses If the hotel food provided as part of a package was inedible, or the room inhabitable – and you were forced to buy alternatives – claim back the cost. The replacements should be of equivalent quality that you would have expected to receive as part of the contract– not at a five star resort, unless that is what you booked.

Loss of enjoyment This is money to compensate you for the disappointment and distress caused by things going wrong, if for example the promised children’s club was cancelled or the pool was out of action. This is hardest to value, and the subject of many disputes. If your children hoped to be in the pool daily – and couldn’t – that could have a huge impact on the enjoyment of the holiday. To others it would be a mild inconvenience. Your claim should reflect that.

Amass evidence

A diary of how the problems affected you, combined with photos or video footage, will greatly help claims. Note the names, addresses and phone numbers of other holidaymakers who can support your case, and scrupulously keep receipts for any money you spent because of the problem.

How to claim

Complain to the trader in writing within 28 days, and send the claim by recorded delivery – with copies (not the originals) of all supporting evidence. Keep a log of the claims process.

Independent travellers who booked through a travel agent or website should complain directly to the hotel or accommodation owner. This is because your contract is with them and not the agent or website – the paperwork will confirm this.

You will only be able to claim the whole cost of your holiday if it was completely ruined and you got no enjoyment from it at all – and assuming what happened was inside the company’s control. Building works next door will often fall outside their control, although if you were wrongly told there no works nearby at booking then you may well have a legitimate claim.

Most tour operators have a complaints procedure. Don’t accept its first offer if you feel it is insufficient – a certain amount of bargaining is to be expected.

If the claim is rejected

The Association of British Travel Agents (Abta) or The Association of Independent Tour Operators offer an independent arbitration service, although there is a charge. In 2013 Abta received 18,660 calls from the public seeking advice, and 10,481 registered complaints. Only 267 cases ended up its arbitration scheme, which awarded more than £165,000 to customers. The average award was £620.94. The service costs between £108 and £264 depending on the value of the trip, which you get back if successful.

Using the small claims court

The consumer group Which? says that before using the small claims court you should first try other ways to resolve your dispute. If you do go to the small claims court you don’t need a solicitor and the procedure is informal, but it will take several months. Even if you win you don’t automatically get the money you’re owed, although big-name firms will usually pay up. You can claim up to £10,000 in England and Wales, and up to £3,000 in Scotland and Northern Ireland. The most you’ll have to pay as a fee for bringing the case is £485, and you get that back if successful.

Claiming against an airline

If your flight has been cancelled or delayed you are entitled to meals (and accommodation if overnight) regardless of the cause of the delay. Once delayed more than three hours on a flight originating or ending within the EU you can also claim compensation of €250 to €600, depending on the flight distance – except in extraordinary circumstances outside the airline’s control, such as the weather conditions or strikes. Delays covered by technical faults are not considered extraordinary, although the airlines are fighting this.