A Cheshire-based agency has settled a dispute with a bed bank out-of-court after a client’s booking was cancelled at short notice.

Reserve A Hotel sought compensation of £3,000 for the cancelled booking, plus additional costs incurred, from Portuguese bed bank, Abreu.

Samuel Mond, Reserve A Hotel’s joint managing director, discovered his client’s booking for Jumeirah Al Naseem Hotel had been cancelled the day before the holiday was due to start on March 1.

In a legal letter seen by Travel Weekly, Mond claims staff at the Jumeirah Al Naseem told him the booking had been cancelled by Abreu.

Reserve A Hotel has now received an undisclosed sum from Abreu, which is understood to cover the compensation claim and additional costs. Reserve A Hotel has now dropped its legal claim for compensation made on July 2.

Mond said: “I have always said that it was a David and Goliath battle and matter of principal. I wanted Abreu to admit its mistake.

“I would not say that I am happy, but I am satisfied that they have decided to look at all the facts and made right an error on their part.”

Abreu confirmed the case had been resolved when contacted for a comment.