If a business class flight booking is replaced with an economy class only flight, what recourse do I have?

I booked my parents in law for a return business flight domestically. The flight away was fine, but coming back, their plane was cancelled and replaced with a plane with economy only.
What am I/they entitled to in terms of points refund, compensation etc?

Unfortunately, as far as I understand, the airlines are ultimately responsible for getting you from A to B safely. You could try and get a refund for the point difference.

My most recent sour experience was a last minute flight cancellation and they offered a replacement flight much later in the day, which wasn’t suitable. They could only offer a point refund and I had to pay for last minute flights with $$. I would have rather fly economy on the original flight in that instance.

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Most likely they should be able to claim the fare difference.