Complete guide to claiming compensation for failed package holidays. Learn Package Travel Regulations 2018, diminished value claims, ABTA arbitration, proper performance rights, and 2-year claim deadlines.
Package holidays are protected under the Package Travel Regulations 2018. If accommodation is not as described, activities cancelled, or service is poor, you can claim compensation under reg.15 (proper performance obligation). Tour operators must provide the package as promised or offer free remedies. If they don't, you can claim diminished value (difference between what you paid and what you got). Average claims: £200-£1,500 per person depending on number of days affected and how serious the failure. ABTA arbitration (if your tour operator is ABTA-approved) handles claims free up to £5,000. You have 2 years to claim from the end of your holiday. No solicitor needed; most operators settle claims directly if evidence is clear. Keep photos, booking confirmation, and complaint correspondence.
Take photos/video of poor accommodation, missing amenities, or cancelled activities. Complain immediately to tour operator (in writing, email + registered mail). Keep all documentation: booking confirmation, brochure promises, photos, emails. Tour operator has duty to remedy problem (fix accommodation, offer alternative activity, partial refund). If they refuse, proceed to claim compensation.
Calculate: (Total cost ÷ number of days) × days affected = diminished value. Example: £2,000 holiday for 10 days = £200/day. If 4 days ruined: claim £800 (diminished value) + actual losses (meals not provided, paid activities not offered). Include emotional distress if holiday completely spoiled. Send formal claim letter with evidence. ABTA members must pursue ABTA arbitration first (free, binding up to £5,000).
ABTA arbitration: submit complaint form, evidence, and claim (no fee for claims up to £5,000). ABTA expert reviews; decision is binding. Takes 2-3 months. Non-ABTA operators: claim at small claims court (£100 filing fee). Court decides based on evidence. Most claims succeed if accommodation genuinely differs from brochure description or advertised activities don't happen. Settlement: full diminished value or partial refund.
Brochure promised sea view; room faces car park. Booked 4-star; reality is basic 2-star. Claim: diminished value (30-50% of holiday cost). Compensation: typically £300-£800 for 10-day holiday.
Excursion, water sports, or meals included in brochure cancelled or not available. Claim days lost as percentage of total holiday. Compensation: £150-£500 depending on activity value and days lost.
Your flight cancelled, rescheduled, or severely delayed (8+ hours). Package Travel Regs cover flights. Claim: diminished holiday (lost days) + costs for accommodation/meals during delay. Compensation: £200-£1,000.
Hotel room infested with insects, mold, unsanitary condition. This is material breach - organiser must move you immediately or offer full refund. If moved late, claim compensation + emotional distress. Awards: often 50-75% refund + £300-£800 compensation.
Staff rude, unhelpful, or neglectful (missing meals, not providing promised service). Difficult to claim unless service was genuinely poor and quantifiable (missed 2 days of meals). Compensation: modest (£100-£300).
Booked double room, given twin. Booked beachfront villa, given inland apartment. Organiser should offer upgrade or alternative. If refused, claim diminished value. Most operators settle (£200-£600 typical).
Use FightingBack's Holiday Tool to calculate your diminished value and prepare a compensation claim.
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