Travel companies told to prepare for onslaught of compensation claims

Holiday firms are being warned to expect an onslaught of compensation claims from disgruntled clients as the credit crunch takes hold.

Specialist holiday law practice, Travlaw, says it is now handling a record volume of claims - both consumer and commercial - on behalf of travel businesses.

Managing partner Stephen Mason explained: "There is a huge need for legal services in a tough economic climate, and for holiday firms adequately to protect themselves against an onslaught of claims and redundancy issues whilst also reducing expenditure - a difficult combination for any business to manage."

Previously known as Stephen Mason Solicitors, the Leeds-based holiday law company has rebranded as Travlaw to reflect the expansion of the firm.

The practice now has six lawyers specialising in holiday litigation, including practice founder Mason.

"Historically economic downturns lead to a greater number of cases against a business; consumers fight to receive compensation or refunds while corporate cases also increase as suppliers fight for contract release, outstanding payments or to relinquish responsibility.

"Unfortunately, an economic downturn also leads to businesses making widespread redundancies which also require legal expertise and proper management." Report by Bev Fearis Travel Mole website.

Published: 9.4.2009