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Package Holiday problems Thomas Cook Internet

Anyone else had any problems with Thomas Cook Direct - this is the Thomas Cook web site. Spent hours looking through the web site to find an adults only hotel near to Alcudia in Majorca - our 25th wedding anniversary - so wanted something a bit different/special - booked early September - everything confirmed in writing with tickets etc. Recieved phone call from Thomas Cook call centre last week (19th) to say hotel overbooked, Thomas Cook had cancelled our reservations and put us in another hotel 3 miles outside Alcudia which is a family hotel. Not what we wanted at all. We know there were vacancies available at our original hotel up till a few days ago as we telephoned the hotel in Majorca!
How can they get away with this! - seems you can book and have actually no guarantee of where you will end up - customer service terrible over telephone - if you can get through to them! Never again!! Back to the high street Thomas Cook offices if I ever use them again.
Anyone had similar problems and can you get compensation?
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