Q: A week before my family and I were due to go on a holiday to Spain, the tour operator said we would be staying somewhere different to where we were originally promised and agreed to.

When we checked about the new hotel, we found out that the quality of the accommodation was not as good as our original hotel. Moreover, the tour operator offered us no compensation for the difference in quality. What can we do?

A: The Package Travel Regulations state that should the organiser be compelled before departure to cancel or make a significant alteration to an essential part of the contract, you should be offered the choice of either of the following:

• A replacement package of equivalent or superior quality if the organiser is able to provide this;

• A replacement package of lower quality if the organiser is able to provide this. In this case, you are also entitled to recover the difference in price between that of the package purchased and the replacement package;

• A refund of all money paid under the contract.

It should be noted that the Act does not specify what a 'significant alteration to an essential term of the contract' would involve. However, it may include instances such as a significant change in departure time, changes to the resort or location, a change to the type of accommodation or some other change that significantly alters the holiday.

Therefore, you can either opt to go on the holiday and ask for a compensation to make up for the difference in quality, or you may opt to cancel your booking and get a refund of the money already paid.