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small claims court for travel website (orbitz)

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Does anyone have any resources, experience, or information on what to do when you are getting royally screwed by a travel booking company?

Just returned from a 2 week trip to UAE and then India yesterday. My husband and I booked the flights on November 30th and purchased trip insurance at time of booking. While in Dubai I got major food poisoning and had to go to the hospital which made us miss our flight from Dubai to Delhi. We had to reschedule it to the following day which cost $1500. There was no other option and we figured with travel insurance we would recover at least some of the hit. My husband tried filing a claim while still in Dubai but had trouble with it. Didn't have the ability to make a phone call so we decided to pursue it full on when we returned to USA yesterday. Allianz (our travel insurance) had no record of us purchasing insurance. We had a confirmation email from Orbitz with the travel insurance number so we were confused. We called Orbitz who happily gave us the same travel insurance number again and confirmed they had a record of the insurance confirmation. After pursuing it longer it turned out that at time of booking, Orbitz somehow did not actually charge our credit card for the insurance and never purchased it from Allianz.

Orbitz is not taking responsibility for this AT ALL and is only offering us a $200 voucher for future travel for the "inconvenience". They also claim that the tickets were purchased too long ago and they can't do an IT investigation to see what went wrong (The tickets were purchased less than 4 months ago!). I guess our only option is to take them to small claims? I'm blown away by the lack of customer service.

Any advice or insight?

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