Spanish Hoteliers Take Action Against Holiday Sickness Claims Fraud

Hoteliers from Benidorm, the Costa Blanca and Valencia (HOSBEC) have seen a huge increase in the number of compensation claims for alleged ailments during holidays from British customers this summer, for which there is often no evidence. As a result, the association of hoteliers have decided to take a stand against any suspected fraudulent claims, of which they feel are the majority of claims. This is estimated to cost over 60 million euros. 

The compensation claims industry in the UK, with its abundance of specialist claims management companies, who once focused on vehicle accident injury and PPI claims, are now increasingly targeting holidaymakers with aggressive marketing campaigns to encourage the filing of thousands of unfounded complaints.

According to HOSBEC the aggressive customer on boarding methods include social media, cold calling, resort-based salespeople and even those dressing up as tour operators at hotels to reel in customers.

HOSBEC estimates the financial consequences could cost in excess of 60 million Euros for the whole of the Spanish hotel industry this summer. A cost which the industry simply cannot afford, especially when considering the majority of complaints lack even the slightest grain of truth, and will ultimately impact on cost of holidays.

Nuria Montes, General Secretary, from HOSBEC said

“We feel the British complaints procedure which allows claims to be processed when there is no evidence of truth creates a grossly unfair and disproportionate system. It unreasonably inflates the cost for the hotelier by adding fat profits for lawyer firms who bill for 90% of the total amount of the claim, while only 10% of the amount is allocated to offsetting the alleged damages to the tourist. This system is completely contrary to the Spanish one, whereby the claimant must prove the accuracy of what they are claiming.

This growing compensation claim culture is changing the tourism industry radically and business relations between hoteliers and tour operators cannot remain immune to this change.”

To protect holidaymakers from the huge costs of this suspected fraud and ensure that genuine complaints can be addressed effectively HOSBEC is implementing a number of short term measures including:

• Traceability systems for guests so that they can continuously track their meals and drinks consumption and use of dining areas and restaurants. These systems will allow hotels to check whether consumption patterns are compatible with the causes alleged in the complaint form, which mostly have to do with gastrointestinal illnesses. This will all be bolstered by an increase in the HACCP* control systems already in use at hotels.
• More information will be given to guests, advising that it is illegal to pursue a fraudulent claim and it is feasible that under certain circumstances could result in a prison sentence.
• In addition, HOSBEC is urging ABTA and leading UK tour operators to lobby Government to trigger a radical overhaul of this claims system.

This issue also only affects bookings made via tour operator partners under the EU Travel Package Directive 2015 and is yet another example of how the legal and regulated accommodation sector is the victim of such practices, whereas online booking platforms are operating 'soundly' without being subject to any similar mass complaint campaigns.

It is also important to note that these problems are unique to the UK market, with guests from other popular inbound countries such as Belgium, Holland and Portugal, and even the British direct sale market, having no grounds for complaint.

*HAACP is a tool to assess hazards and establish control systems that focus on prevention. It can be applied throughout the food chain from the primary producer to the final consumer. 

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