Legal – The travel agency told me that my hotel is oversold, what are my rights?

Since this question will probably involve some laws, I will declare that I am German and that I was booking through an online site that is mediating for travel agencies.

I booked a hotel on May 15 for a week's stay in Italy on Lake Garda (June 19-26). On May 25, the travel agency told me that the hotel was oversold and offered me a new, in my opinion inappropriate, one to stay. I told them that I know that region and that the other hotel is not in doubt for us. . I provided them with some alternatives, one of them in the same city, the others in different cities (probably 15 km away).

Today, on May 29, I received a new offer from the agency for one of the hotels that I proposed, but at a higher price. It has an additional star compared to the hotel originally booked, but it's not in the city you wanted and the city doesn't even have a beach. I was offered to pay € 773 for the alternative that I suggested when I explicitly said that my budget would not exceed the € 653 that I initially paid.

They also offered me a hotel at no additional cost. It also has an additional star and costs more, but it's on the other side of the lake! I specifically looked for a hotel on the east side and driving from Limone takes at least an hour to get where I want to go on vacation.

I want to get a solution from the agency, as it is now too late to find something else.

What are my rights regarding compensation if I accept any of your offers, even if I take the most expensive hotel at no additional cost? Can I somehow demand that they let me stay at the hotel (alternative and more expensive) that I proposed at no additional cost?

Edit November & # 39; 19: I wrote a formal complaint to the travel agency stating that they could not offer me a suitable alternative reservation. In a similar case, the German Federal Court ruled compensation of up to 50% of the cost of the original reservation in favor of travelers. The agency took more than 2 months to respond simply that I have already canceled the trip and that is all, regardless of my claim. I filed a complaint and they will review it again, probably it will take another two months.