Cancelled holiday

Q: My husband and I booked a package holiday with a local travel agency and paid the balance in full. The agency’s representative told us that we should receive the tickets by post two weeks later. A month passed and we heard nothing from the travel agency. We therefore went to the agency’s office to enquire about the flight tickets.

On presenting our receipt of payment for the package holiday, the reservations clerk informed us that our holiday had been cancelled. We asked to speak to the person in charge of the agency to settle the matter. The only offer he made us was to change the dates of our holiday and to lengthen our stay by four days, at our cost.

What are our rights as consumers with regard to the fact that we were not informed, neither by phone nor in writing, that our holiday had been cancelled?

A: According to the Package Travel, Package Holidays and Package Tours Regulations, in case of cancellation, consumers are first of all entitled: a) to take a substitute package of equivalent or superior quality if the agency is able to offer such package; or b) to take a substitute package of lower quality if the organiser is able to offer such a replacement and to recover from the organiser the difference in price between that of the package purchased and the replacement package; or c) to have repaid to you as soon as possible all the money paid under the contract, in other words, a full refund of the sum you paid.

Furthermore, the regulations also state that “the consumer is entitled, if appropriate, to be compensated by the organiser for non-performance of the contract”.

The only exceptions to this is where: a) the package is cancelled because the number of people who agree to take it is less than the minimum number required and the consumer is informed of the cancellation, in writing, within the period indicated in the description of the package; or b) the package is cancelled due to unusual and unforeseeable circumstances beyond the control of the organiser.

However, what these regulations do not specify is the kind of compensation the organiser should provide for the cancellation. This is something that the two of you should either reach an agreement on, or if you don’t, then you may file a complaint with Office for Consumer Affairs for mediation. If the mediation proves unsuccessful, then you may opt to take your case to the Consumer Claims Tribunal.