Why Are British Airways Passengers Hitting a £200 Hotel Cap During Delays?

A recurring issue is frustrating British Airways delayed passengers. The airline is reportedly enforcing a £200 hotel price cap for accommodation assistance. This limit applies during long, overnight flight delays. Passengers are often told to book their own hotel and claim the cost back later. They are then shocked to learn about the internal reimbursement limit. This policy creates conflict over British Airways delay compensation obligations. It raises questions about the airline's duty of care obligations under current regulations.

The Regulatory Framework

European Union (EU) and UK law protects delayed passengers hotel costs. Regulation EC 261/2004 and its UK equivalent mandate assistance. Airlines must provide care for significant delays. This includes meals, communication, and hotel accommodation. The law requires this assistance be provided free of charge. It must also be considered "reasonable" under the circumstances. This air passenger rights regulation does not set a specific monetary limit. This lack of a clear cap is key to the current controversy.

The £200 Cap Controversy

Reports suggest British Airways is applying a strict £200 limit. This cap is reportedly per room, per night. The airline uses this figure for passengers booking their own hotels. The airline's response to one passenger stated: "We do have guidelines in place... which means we can contribute £200 towards your hotel costs". This cap is self-imposed by the airline. Regulators have never suggested costs above £200 are automatically unreasonable. The British Airways hotel price cap forces passengers to pay upfront. They must then claim the excess back from the airline. This is especially difficult in high-cost hubs like New York JFK.

Industry and Passenger Impact

The core conflict lies in the definition of "reasonable." Airlines aim to control operational costs. Providing open-ended accommodation is expensive for carriers. However, EC 261 passenger rights prioritize the passenger's welfare. Aviation experts note that £200 may not be reasonable in all global hubs. This situation highlights a gap in UK 261 compensation rules. This gap exists between legal obligation and airline cost management.

Passengers impacted by overnight flight delay assistance face immediate financial stress. They are legally entitled to care, regardless of the delay's cause. Yet, they must pay out-of-pocket for necessary accommodation. This reduces trust in the airline's service delivery. The EASA oversees safety standards in Europe. The UK Civil Aviation Authority (CAA) handles passenger rights enforcement. Travelers should always keep receipts for all expenses. They should also document the airline's instructions. This is crucial for successful reimbursement claims. Industry bodies like IATA continue to work with regulators. Their goal is to balance passenger protection with operational realities.

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• The £200 cap is reportedly applied per room, per night by British Airways.
• The UK/EU regulation mandates "reasonable" accommodation, without a fixed cap.
• Passengers must pay the difference and seek later reimbursement, often leading to rejected claims.
• The issue highlights the conflict between airline cost control and legal passenger welfare obligations.