There have been some discrepancies in the advice given to travellers following the ash cloud eruption in Iceland recently. However, there are clear EU regulations regarding this matter. If a flight is cancelled, it is the responsibility of the Airline to provide stranded passengers with a hotel and food until an alternative flight can be found. Occasionally, the airline will ask passengers to buy their own provisions and on those occasions, it is crucial that all receipts are kept in order to claim on return to the UK.
When travelling to the UK from outside Europe on a non-European airline, the situation becomes much more complex. It is uncertain if the airline will pay for accommodation but they may be amenable.
Compensation may not be paid out at the usual rate due to a get out clause in the EU regulations. This basically states that airlines do not have to pay normal rate compensation if the event in question was completely unavoidable.
This also impacts upon those who decide to travel home on an overland route as it is doubtful that they will be entitled to any compensation at all.
If the passengers are staying in a resort, then it is reasonable to expect that the tour operator accommodates them in the very same hotel, if possible, or in accommodation that is similar in standard and location.
Travel insurance has now been adapted to reflect the ongoing potential disruption due to the ash cloud. However, it is essential that individual policies are checked prior to travel as there is no blanket policy for travel insurance.
This information was provided by Travel Jungle.