My daughter and boyfriend were due to travel to the Maldives with T.C. Signature tomorrow. This afternoon, less than 24 hours before their flight they were contacted by the T.C. travel agents and told that their hotel had been overbooked and the last 20 bookings had had their holiday cancelled. They went to the shop and were offered an alternative hotel in the Maldives if they were prepared to pay £6000 extra or an alternative holiday in Mauritius at no extra cost which they didn't want.

They have been offered a refund and the magnificent sum of £40.00 each as compensation.

The shop are now trying to find an alternative holiday but are having difficulty doing so and in any case my daughter and boyfiend specifically wanted to go to the Maldives to the hotel they booked at this time of year. Getting leave is difficult for both of them as it has to be booked well in advance with their companies and it is unlikely that they will be able to get the dates of their choice later in the year now.

They will lose the first day of their holiday tomorrow now anyway trying to see if an alternative holiday can be found.

Seeing as the Tour operator has overbooked, is it reasonable that they can give such short notice as they must have known this for some time?

Surely the level of compensation offered is derisory as it is all down to the tour operator although T.C. say it is in the small print of the contract that they can do this.

Advice please.