This was a fault of Expedia and I would have taken them to small claims court. Their website instructs you to enter the letters exactly as written in your passport. You did so, but their website does not recognise letters with accents. This is a fault of the website design and you should not have been held liable. If you look at the Accor hotels website, for example, they recognise this fault in their website design and advise people not to enter accents, even on their french website to eliminate this flaw. Expedia operate in an international setting and they need to adapt to this. I think you would have prevailed in small claims court if you have such a system in Croatia.
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