Damages awarded by the courts against travel companies are to rise by 10% from next year.

The increase in personal injury cases has been disclosed by travel law firm Travlaw.

The court of appeal confirmed that all general damages in “virtually all” civil litigation cases should be increased by 10% from April 1, 2013.

The Leeds-based specialist solicitors said in advice to the travel industry: “In truth this is only one part of a set of significant reforms currently sweeping through the world of civil litigation, but the bottom line for you is that the amount you will have to pay out in cases, be they small claims or personal injury will be going up.

“Every type of general damage is covered, from pain and suffering damages in personal injury, to disappointment/distress in bad holiday claims.”

The firm admitted that it was “taken aback” by the scope of the rise following a two year period when damages awarded in holiday cases have been “notably lower”.