Changes to a package holiday

Q: About 10 weeks ago, my wife and I booked and paid a deposit for a package holiday in Sicily. However, the travel agency recently informed us that the hotel we originally booked was no longer available and offered us an alternative one.

The problem is that the new hotel is more than 10 kilometres away from the centre. Therefore we requested our deposit back and informed the agency that we wanted to cancel our booking. The travel agency told us that if we cancel, we would lose our deposit. Can they do this?

A: The travel agency cannot keep your deposit, as you are entitled to a refund. According to the Package Travel Regulations, when an agency alters a significant part of the holiday, the consumer must be given the option to take a replacement holiday of equivalent or superior quality, to take a lower grade holiday and a refund of the difference in price, or to cancel the holiday and obtain a full refund. If the agency refuses to adhere to its legal obligations you can contact the Consumer and Competition Division for mediation and amicable settlement.