Titanic Memorial Cruise passengers agree out of court settlement

A three year dispute between Fred Olsen, Miles Morgan Travel and 200 passengers on a Titanic Memorial Cruise has ended with out of court settlements for a handful of the complainants.

The return cruise from Southampton to New York took place in 2012 on Fred Olsen’s Balmoral, chartered by Miles Morgan Travel, a member of the Hays Independence Group.

Afterwards, some 200 of the 1,200 passengers joined together to claim a refund of the £325 per person fuel charge, which they claimed was excessive, and compensation for the omission of two scheduled ports of call on the return leg of the cruise.

Protest group leader David Cotton claimed that although the majority of the original 200 claimants were unable to pursue their claims through the British courts as they lived overseas, 22 people had received and accepted out of court settlements from Miles Morgan.

Several of these were subject to confidentially clauses so the full amount paid has not been revealed, but Cotton, who said he was awarded £2,300 in compensation and costs, estimates the total payout to be around £15,000, or about £680 per person.

Miles Morgan of Miles Morgan Travel refused to comment on the figure.

"Although we ultimately failed to get a definitive judgment, we feel our position has been vindicated," said Cotton.

"If nothing else, we hope it will serve as a warning to cruise companies not to play fast and loose with their obligations under the 1992 Regulations in future.

"Cruising is a hugely profitable industry and it should not be necessary to rip off clients or cut corners in this way. We have always sought to emphasise that we were not challenging the right of cruise companies to impose fuel surcharges or make itinerary changes in appropriate circumstances. Our argument has been that the mechanism for calculating a fuel surcharge (or refund!) should be clearly set out and the amount properly validated.

"Similarly, unless made for genuine reasons of force majeure, clients should be given adequate notice of changes of itinerary, and either be given the opportunity to cancel their bookings or be offered adequate compensation.

"These are fundamental requirements of the 1992 [Package Travel] Regulations which are all too often ignored or glossed over."

Cotton  was also critical of ABTA’s handling of the dispute, saying: "The Association has simply closed ranks with its members and completely abrogated its wider regulatory function.

"Whilst the Association might not like to admit it, it must have been obvious that the Memorial Cruise passengers had a valid case and it could have taken steps to broker a sensible settlement much sooner, rather than sitting back and putting everyone – not least its own members – to unnecessary trouble and expense."