The Association of British Travel Agents (Abta) has cut the time it takes to handle holiday complaints as part of its new-look arbitration scheme.

Previously, people making an official complaint about a holiday bought from an Abta tour operator would have to wait up to nine months to find out whether they had won their case . Now the same case will take a maximum of three months to be resolved.

The levels of compensation consumers can claim has also increased, from £1,500 to £5,000 for individual cases and from £7,500 to £15,000 per family, to bring it into line with the maximum claims allowed by the Small Claims Court, the alternative avenue for holiday grievances. Keith Richards, Abta's head of consumer affairs, says: 'The increase reflects the fact that holidays have become more expensive, particularly with more people travelling to long-haul destinations.'

Complainants with personal injury or illness claims of up to £1,000 can be heard by an arbitrator for the first time, which also brings the scheme in line with the Small Claims Court.

Holidaymakers who are unhappy with the decision reached by the arbitrator can now take advantage of a new appeals procedure introduced from 1 May. The case will be heard by a senior arbitrator who has the power to reverse an award or revise compensation levels. Around 80 per cent of the 1,300 complaints taken to arbitration last year were won by the holidaymaker. The most common complaints relate to the quality of hotel or self-catering accommodation. Flight delays are another big gripe.

Complainants pay a fee to have their case heard by an arbitrator. Fees range from £72.85 for claims of up to £3,000 to a maximum of £164.50 for claims between £10,001 and £15,000.

• For more information, contact Abta's Information Bureau (020 7307 1907). Complaint forms can be downloaded from the Chartered Institute of Arbitrators' website.