A ruined holiday? So make them pay

Last year Patrick Wells, from Worcester, travelled on a package to Tenerife with tour operator JMC.

He was unhappy with the flight, provided by Spanish airline Iberworld, so he wrote to JMC to complain. But he was told 'we are a completely different company to Iberworld, so any compensation is to be made by them' - and was given Iberworld's contact details.

JMC's response flies in the face of the laws covering package holidays. When you book a package - a holiday that includes transport and an additional component such as accommodation - your key rights are laid out in the Package Travel, Package Holidays and Package Tours Regulations 1992.

Crucially, these state that the tour operator must provide a holiday as described in the brochure and in line with the booking conditions, or it is liable to pay compensation. The regulations also spell out that the operator is responsible for every part of the package.

This means that if you believe your accommodation, transfers or, as in the case of Mr Wells, flights don't come up to scratch, your beef is with the tour operator, irrespective of who actually provided the service. So, if you have a serious gripe about your package holiday this summer, what should you do?

Step one: COMPLAIN AT ONCE

Make your complaint as soon as the problem arises - either by contacting the rep or, if one isn't available, the UK head office. Legally, you must let the tour operator try to sort out the problem, and it may be able to do so, possibly leaving you better off (I once asked to be moved from a tiny cottage with a shared pool in Andalucia because it overlooked a building site and ended up, at no extra cost, in a luxury villa with its own pool).

Step two: GATHER EVIDENCE

If you get no satisfaction, arm yourself with as much evidence as possible. Ask the rep for a complaint form and fill it in, keep a diary if the problem is ongoing (for example, if there is persistent noise), take photos and video footage, get names and addresses of other holidaymakers who can support your case.

Step three: PUT IT IN WRITING

When you get home, complain to the tour operator in writing within 28 days, even if you've booked through a travel agent. State succinctly where you think theoperator was at fault. Be clear how much compensation you are seeking. Consider three factors - loss of value (for example, the difference in cost between the promised room with a sea view and the room overlooking the car parkyou ended up in); loss of enjoyment (the food was inedible, say) and out-of-pocket expenses (since the food was inedible, you ate out most nights - you'd need to keep receipts).

Send correspondence by recorded delivery and keep copies. Members of the industry body ABTA are required to acknowledge within 14 days and provide full replies within 28. If they don't, phone ABTA; it can fine tardy members.

Step four: WRITE AGAIN

So you get a reply, but it's unacceptable (a common ruse among operators is to offer a small discount off a future holiday - as if you'd want to travel with them again). If you're adamant your complaint is justified, write again, this time threatening legal action.

Step five: TAKE IT FURTHER

In many cases operators capitulate, or at least improve their offer, to avoid hassle. But if you need to follow through your threat, there are two inexpensive options which do not require a solicitor: arbitration and the Small Claims Court.

Under arbitration, you submit documents without having to appear in person. ABTA relaunched its arbitration scheme last year, aiming to resolve disputes in two months (previously, the average was more than five) and increasing the limit of claims to £5,000 per person, £15,000 per booking. The scheme costs £72.85 to £164.50, depending on the claim's size, which may be reimbursed if you win (in 80 per cent of disputes the arbitrator finds in the holidaymaker's favour).

You must enter arbitration within nine months of returning from holiday, and only after at least two letters have been exchanged with the operator.

The Association of Independent Tour Operators (AITO) offers a similar scheme. Costing £94, it covers claims up to £1,500 per person, £7,500 per booking.

If you go down the small claims track, fees in England and Wales range from £27 to £195 depending on the claim amount - the maximum is £5,000. For Scotland, go to www.scotcourts.gov.uk.

Arbitration is less of a palaver than going to court. But the small claims procedure gives you the chance to present your case in person, and a legal expert at Holiday Which? reckons it is more likely to get bigger awards than arbitration.

PERSONAL INJURY CLAIMS

If you become ill or are injured on a package and the hotel is at fault, the tour operator has to take responsibility. Personal injury claims up to £1,000 can be made through the small claims procedure and ABTA's arbitration. However, most of these types of claims are for gastric illnesses, where settlements can far exceed the cost of the holiday. For example, last year Cosmos paid out more than £18,000 to individual holidaymakers who became ill in the Dominican Republic.

So if you suspect dodgy hotel food has made you seriously ill, get legal help. The watchdog, Holiday Travelwatch, can suggest law firms with relevant expertise. It may be that your case can be handled on a no-win, no-fee basis, but there will still be costs to pay if you lose.

? ABTA (020 7307 2044, www.abta.com), AITO (020 8744 9280), Court Service (020 7210 2266, www.courtservice.gov.uk), Holiday Travelwatch (0121 747 8100, www.holidaytravelwatch.com).