Travel question of the day: Simon Calder on whether it's worth accepting vouchers as compensation instead of cash

Have a travel question that needs answering? Ask our expert Simon Calder

Monarch offers a transparent and potentially valuable voucher compensation policy

Q When making a compensation claim for a cancelled flight is there normally any benefit to asking for vouchers rather than cash?

Annabelle Marston

A The European rules on air passengers’ rights, known collectively as EC261, specify payouts for cancelled or heavily delayed flights. They also say that the default should be cash payment (or, strictly, payment by bank transfer, cheque or to the card used for the original purchase). Airlines may offer travel vouchers instead of cash, but only with the signed agreement of the passenger. And the passengers should only agree to accept vouchers if there were something in it for him or her: higher value than you would get in cash, and confidence that you will be able to use the vouchers.

Monarch has a transparent and potentially valuable policy, with an uplift of 20 per cent in the amount of compensation. The airline says: “In the case of a successful claim, you have the option to choose whether any settlement is paid by cheque or by Monarch Flight Vouchers. If you select Monarch Flight Vouchers then you will receive a voucher to the value of your delay compensation plus 20 per cent. For example, if you are entitled to compensation of €250 then you will receive a Monarch Flight Voucher to the value of €300.

These vouchers are generally valid for a year from the date of issue. So for anyone with a holiday home in Spain, for example, it could be an excellent deal.

Other airlines, though, are not so straightforward. I have seen multiple cases of Thomas Cook Airlines failing to seek signed agreement before supplying vouchers. With no benefit to the passenger, I have told claimants to demand cash, as they are entitled to do.

Every day, our travel correspondent, Simon Calder, tackles a reader’s question. Just email yours to s@hols.tv or tweet @simoncalder