Have also posted this in Legal:
We have been contacted by our travel agent to say that the accommodation we have booked for our summer holiday next August has not renewed their contract with the Tour Operator (TO) next year.
To ensure we got one of the free child places for our holiday in August 2011, we booked the holiday on the day that the TO released them for sale, which was back in April this year. Our current booking is for a one bedroom apartment on a 4 complex on a half board basis, on one of their premium properties. In replacement we have been offered, with no discount or recompense, a single hotel room on an all inclusive basis in a 4 complex (but not in the premium range), and in a different resort (same island though). They say that this is an upgrade as the cost of the hotel is higher than what we have currently paid for the apartment (this is true if we didn't have the free child place: with the free child place the cost is £342 less; without the free child place the difference would be £857 more - and if we hadn't had the free child place at the apartment, then that actually would have cost more as children do not count towards occupancy).
Our issue is that we are not being offered like for like: accommodation is (much) smaller, not as high a quality and in a different resort. We have also been told that we could not have been guaranteed a free child place at the hotel if we had booked that but as we booked the holiday the day the holidays were released we think this is highly unlikely (and surely with computerised booking sytems they would be able to track when the free child places were available).
Of course we have the option to cancel our booking but then we will be penalised as we will no longer be able to find a holiday for when we want to go (end of August) that still has free child places available, and will thus be liable for the higher charges.
Would anyone have any idea what we can do?