Are there any limits to what I can claim for additional costs of replacement travel arrangements or other losses?

There are limits, and these have been set out in a guideline published by the Board of the TCF. The following is a summary.

Overall ceiling on consequential losses
While you may claim the whole amount paid to the travel agent and lost due to the agent failing to account to you, you may only recover additional losses up to a ceiling of 25% of the gross contract amount for travel, or travel-related arrangements. That is, your overall compensation is limited to 125% of that amount. These additional losses are referred to as ‘consequential losses’.
The TCF has a discretion whether to pay such consequential loss claims. It may decide not to pay such a claim at all.
Subject to the limit, the TCF ordinarily compensates claimants for the following consequential losses:
  • telephone and fax charges;
  • increase in cost of airfares, car hire etc, due to unavailability of original package, provided there is no unreasonable upgrading of travel arrangements;
  • increases due to exchange rate movements;
  • credit card charges, bank charges, and interest costs relating to the refinance of travel arrangements;
  • costs of meals and transfer vouchers where these were included in travel arrangements.

There may be other types of losses that the TCF will approve in particular circumstances.

The TCF will not under any circumstances pay compensation for the following:
  • disappointment, loss of enjoyment, mental distress, or stress of any kind;
  • business or commercial losses of any kind;
  • legal expenses.

Where a claimant establishes exceptional hardship or other special circumstances, the TCF may pay an additional loss claim which exceeds the 25% cap which the TCF applies to such claims. The TCF Guideline for payment of additional loss claims is downloadable.

 Click here to download the Consequential Loss Guideline No. 1.