Damen Bennion, a blue-chip lawyer, and his accountant wife Jane were awarded the payout following their disappointing £6,670 holiday at Club Med Opio in Provence.
The pair told Central London County Court they found themselves in a "smelly" room before being served "awful" dinner and stale breakfast pastries.
"It's not hard to get pastries right in France, but they got them wrong," Bennion, 49, told the court.
When they requested a room change, they were moved to a suite where mould dotted the walls.
The couple had expected a luxurious getaway at the resort, which promises that "fragrant lavender, the song of cicadas, and the taste of tapenade take you to the heart of Provence".
Bennion, 52, who runs his own law firm specialising in collectable cars, had planned the trip for his family of four in July 2023.
Their two young sons were excited about the activities on offer, while the parents looked forward to relaxing by the pool.
But problems began immediately upon arrival when they were unexpectedly charged a parking fee at what was advertised as an 'all-inclusive' resort.
The four-star hotel, which charges up to £2,600 per night for rooms, failed to meet their expectations from the start.