This is intended as a simple guide to claiming compensation:You will form a legally binding contract with your Tour Operator when your holiday booking is accepted i.e. when you get a confirmation invoice. You are then entitled under the Package Travel, Package Holidays and Package Tours Regulations 1992 to the holiday you believe you booked and paid for. Therefore carefully consider how the holiday is described in the brochure or on the website etc.
If the holiday does not substantially match the description, you may have a claim against the Tour Operator for compensation. The operator is liable for all the services if it has organised two or more aspects of your holiday, i.e. a package. For example: car hire, accommodation, flights, etc.
You cannot generally succeed in a claim for loss of enjoyment. Unless it was a special trip such as a honeymoon which went quite wrong your claim is unlikely to succeed.
A successful claim relates to important terms of the holiday contract known as express or implied terms that must have been broken; e.g. an express term where the brochure promises full board or entertainment each night which is not available or an implied term that your holiday should be of a reasonable standard bearing in mind the price you paid, i.e. not a specific term written into the contract but one that is generally accepted by the average person and the courts.
In addition to breach of contract, to qualify for compensation the court must be happy that you have suffered a loss as a direct result of that breach. Courts consider what effect this breach had on your holiday experience overall. However if the Tour Operator offers a reasonable alternative to help make up for the breach you must consider taking this or it may be said that you have failed to try to mitigate your loss. This is a legal duty on the complainant and failure to do so may invalidate your claim.
You must raise your complaint as soon as possible to either the Tour Operator or the Holiday Representative at the holiday location and give them all reasonable opportunity to address your concerns.
What compensation might be available:1. The difference between the values of the holiday you paid for and the one you actually got. 2. Refund of any reasonable expenses you incurred as a result of the breach of contract.
3. Something to reflect the disappointment and distress caused by things going wrong.
Where disappointment and distress form part of the claim, there is little legal authority to set a figure on the emotion but courts will look to see if you have acted reasonably.You will only receive compensation based upon the proportion of the holiday which was lost.
E.g. As a rough guide to working out the cost of accommodation, subtract the cost of the flights from the total holiday cost (about 60%) then divide what is left by the number of days you were on holiday for an approximate daily amount paid for accommodation.
Remember, it is rare to get the cost of a holiday back entirely unless the holiday was a complete disaster or if your disappointment and expenses were substantial as in the failed honeymoon scenario above. In addition, if you accepted any compensation in the resort It Is unlikely that you will be able to reopen the complaint once back in the UK.
In any event if you feel you have a claim and are unable to resolve it directly with the Tour Operator please feel free to contact us for further advice on the arbitration offer.
Dispute Settlement Services Ltd Field End Barn, 2 Bury Farm, Kimpton, Hitchin, Herts, SG4 8RH. Copyright 2010 Dispute Settlement Services Ltd All rights reserved

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