Delayed By British Airways? The £200 Hotel Price Cap Passengers Keep Running Into

When your flight is hit by a long, overnight delay, the airline you choose to fly with can have a big impact on the help and assistance you’ll receive while you wait out the disruption.

While some airlines will leave you high and dry, others will promise to provide hotel rooms, and many are even legally required to provide accommodation, refreshments, and transport to and from the hotel.

Or, at least, that’s how powerful legal protections in Europe and the United Kingdom are meant to work. In reality, however, passengers are increasingly being told to find and pay for hotel rooms themselves and then claim the costs back from the airline.

For passengers who can afford the upfront costs, it actually makes a lot of sense to book your own hotel.

Instead of waiting in a long line at the airport that doesn’t seem to move, waiting for the airline to arrange rooms at some mediocre hotel you’d never willingly choose to stay at, you can skip the wait and get some much-needed rest.

Aviation regulators acknowledge that this so-called ‘pay and claim’ method is a commonsense approach, especially when airlines are battling significant disruption affecting thousands of passengers all at once.

In these cases, regulators suggest that passengers can spend a ‘reasonable’ amount on hotel accommodation and expect the airline to refund the entire cost – the problem, however, is that what constitutes a ‘reasonable’ cost isn’t clearly defined.

Some airlines will occasionally provide guidance on what they consider to be ‘reasonable’, but in the case of one British Airways passenger who was delayed overnight at New York JFK recently, they only found out when BA rejected their full claim for the unexpected hotel claim.

In this case, British Airways was on the hook for providing assistance to the passenger, but had told people on the delayed flight to London Heathrow to book their own hotels and claim back the cost.

That’s exactly what this passenger did, submitting the receipt of the hotel to British Airways to get the costs reimbursed. They were shocked to then receive an email from BA telling them that they won’t cover more than £200 (US $268) per night.

That might be a reasonable cap in some destinations, but what about New York City at the height of the Christmas holiday season, when the area is being buffeted by a winter storm that has grounded planes and left travelers stranded?

The passenger shared her story on the popular ‘British Airways Complaints Advice’ Facebook page, where, as the name suggests, frustrated passengers share their experiences with what was once the ‘world’s favourite airline.’

The response the passenger received from BA for her hotel claim read: “We do have guidelines in place for how much we can contribute towards expenses during disruption, which means we can contribute £200 towards your hotel costs.”

The important point to note here is that the price cap that BA is referring to is self-imposed. Regulators have never suggested that hotel costs above £200 are unreasonable and, therefore, exempt from coverage.

Other members of the Facebook group quickly chimed in, explaining that British Airways was wrong and is legally required to cover ‘reasonable’ costs.

“Typical BA,” wrote Rob Ashton-Kane. “They may have ‘guidelines’ but they are legally unenforceable. If the costs incurred were ‘reasonable’ they must reimburse in full.”

While Amanda Cosgrove said, “They’re pulling a fast one. They might prefer it to be £200, but they don’t get to trump legislation’s deliberately vague ‘reasonable’.”

Perhaps someone from British Airways was watching the drama unfold on this post because within 24 hours, the passenger received an unprompted phone call from the airline, explaining that they had reexamined the claim and had decided to reimburse the cost in full.

How to prove your claim is reasonable?

While some airlines will provide guidance on what they consider a ‘reasonable’ expense, British Airways is not one of them. As a result, it’s up to you as the passenger to prove to BA that the price you paid for your hotel stay is reasonable in the circumstances.

• Take screenshots from hotel booking sites that show the average cost of hotel rooms where you are stuck. This proves that the price you paid is reasonable in the circumstances.
• Provide evidence of hotels that you generally stay in. For example, it might not be considered reasonable if you’ve been happy to stay in a three-star hotel for your entire vacation and then book a night in the Four Seasons during a delay.
• Keep all other receipts for expenses that can be claimed: Taxi costs to and from your hotel, as well as for food and drink.
• Airlines won’t generally cover alcoholic beverages or very extravagant meals.