How much can Lufthansa compensate in EUR for a cancelled flight & needing a day layover at a hotel?

Question

I had a 4-part flight booked with Lufthansa (src -> VIE, VIE -> dst, dst -> VIE, VIE -> src). The last leg (VIE -> src) was canceled by them. I called to see what my options were, and they said that they can rebook a flight a day later. I said that I don't want to pay for a hotel for an issue that they caused. They said that I should pay for the hotel, save the receipt, and they will compensate me for the cost of a "reasonable" hotel (and food and whatever else is reasonable). I asked a few times how many euros is "reasonable", but they didn't say.

I assume that they in fact do have a limit, but this is a method that they use to discourage travelers from picking the most expensive hotel within that limit. I have no idea what a "reasonable" hotel costs. On booking.com I see from 23 EUR for a bed in a dorm, but if I look for a place with a single room, breakfast, high reviews, and other similar hotel amenities I see the prices start at 177 EUR.

I am willing to live below my comfort level if they will only compensate me for a dorm, but if they will compensate me for a nice 177 EUR (or more) hotel, I would much prefer that. So how many euros is "reasonable"?

ps. Same for food. I can eat cheep grocery store food, but would prefer to go to a sit-down restaurant.

Answer 1

FWIW, here is my recent experience with Lufthansa.

Outbound first segment of flight MAN>FRA>HOG cancelled 8pm on the evening before scheduled 6am departure to FRA, after I had checked in my luggage using their ‘sundowner’ option and after I had checked into the airport hotel in MAN. I was re-booked onto the next available connecting flight, arriving into FRA at 20:30 to connect with the Holguin flight departing 10am the next day. This meant an overnight stay in FRA. Given the late-ish inbound arrival plus early check-in for the onbound flight, I booked into an airport hotel at 279€. The flight re-booking meant I arrived at my final destination three days late.

• Initially Lufthansa offered me 150€ towards the FRA hotel cost. They said the cancellation was weather-related and refused compensation. They didn’t explain how they arrived at the amount offered for the hotel cost.
• I rejected the offer, as it left me 120€ out of pocket, plus the £145 I had spent on a hotel at Manchester on the evening before my original flight.
• Lufthansa increased their offer to 279€, which I have accepted - it is ‘reasonable’ and covers the extra costs I incurred due to the cancellation/re-booking. Payment is due to my bank account within 10 days.

Conclusion: my situation was really an unplanned overnight transit. If the re-booking had meant I’d have a longer layover in FRA, I would have looked for a cheaper hotel.