How much could/should BA be expected to pay? Here are two stories from my past:
Many moons ago, I ended up giving my father the mumps while we were on holiday in Gibraltar. Insurance company was not happy about paying for a week or two at The Rock Hotel - surely there must be cheaper, they said.
My mother produced receipts showing we had stayed there a few times before, and the insurance company paid up. So, yes, BA - if it can't be bothered organising something itself - could find itself liable for The Ritz, in my opinion.
The other story.
Again, decades ago, I went with a pal for an RAF Flying Scholarship interview at RAF Biggin Hill. We took the overnight train down and went for breakfast at Fortnum and Masons. The sergeant, when we gave him the receipt, said: Fortnum and Masons, Queen's bloody grocers, twenty quid - what sort of lark is this?
I replied: But sergeant, we always eat at Fortnums when we are in London.
With some muttering about wannabe officers and CCF cadets he signed the chit!