Despute between tour operatoe and a customer.Help me to identify the breach of consumer laws in this case;-)?

Randall spotted hotel in Sorento,with views of Capri&decide it would be ideal for the celebration of their 30 anniversary.40hrs prior to departure,Airtours informed Randalls that they were overbooked.The alternative accommodation offered was 2kms from the coast,with an empty pool&no sea views so totally unacceptable.Mr Randall,unable to speak to senior management from Airt.,chose to cancel&recived a refund-�1,850.Randal then booked a week in Majorca, followed by Mediterranean cruise with Airt.and got �120 discount.He felt that Airt.should compensate them for the last minute cancellation to their Sorrento holiday.Airt.said that the Randals had had holiday and reffered him to the small print in the brochure.It allowed late changes and fixed compensationfor the last-minute alterations at�40per person.When he was unable to agreesuitable compsation with Airt.Mr Randall issued a claim against them arguing that the clause in the booking condition restricting amount of compensation was unfair.