Martin Bennett's British Airways flight to the US was cancelled, and before he could contact the airline, he received an unsolicited email from Expedia. The travel agent expressed sympathy and stated he might be entitled to up to €390 (£346) per person, offering help through its partner AirHelp. However, the email failed to mention that AirHelp would take a €100 (£88) fee, Expedia would receive a commission, and that Bennett could claim the full €600 directly from BA for free.
AirHelp is one of many claims management companies (CMCs) exploiting EU Regulation 261/2004, which entitles passengers to up to €600 for delays over three hours, unless due to extraordinary circumstances. These firms charge fees that can exceed 50% of the payout, handling claims that passengers could submit themselves. Since 2014, when the Supreme Court allowed claims for technical faults, dozens of such companies have emerged across Europe, and online travel agencies are now joining in.
Expedia has a deal with AirHelp, receiving a commission for each referred customer whose claim succeeds. AirHelp has recruited a 'large number' of other online travel agencies, though it refuses to name them, and neither website discloses the relationship. AirHelp's website promotes partnerships as a way to 'turn flight disruptions into opportunities', while Expedia defends the service as 'quick and easy', noting customers can always contact airlines directly.
The fees are buried in fine print: AirHelp only mentions charges after passengers fill out a detailed eligibility form, with the price list in grey text at the bottom of the home page. Despite presenting itself as a consumer rights campaigner, AirHelp's advice pages omit that claims can be made for free. CMCs and Expedia argue they save time and complexity, but claimants must submit the same information as they would to an airline.
This summer, some CMC agents were found handing out contracts at airports to holidaymakers from delayed flights, while others market aggressively online with hidden fees. Martyn James of Resolver notes that companies are seeking new revenue streams as payment protection insurance claims are banned next year, calling this 'money for old rope'.
