A lesser-known provision in package holiday terms and conditions may result in a significant increase in the cost of a package holiday, even after booking and payment.
According to a report by Which?, this provision, found in the Package Travel Regulations, allows UK holiday companies to add up to 8% to the cost of a package holiday without offering a free cancellation option under specific circumstances.
These circumstances encompass additional taxes or costs imposed by the destination, significant currency fluctuations, or a rise in fuel or power expenses. The current surge in fuel prices due to the ongoing Middle East conflict could potentially trigger this clause for British holidaymakers who have already booked their vacations if these costs continue to escalate.
If the full 8% increase is implemented, a family of four who spent £2,500 on a holiday might have to pay an additional £200 to the holiday provider or risk having their trip canceled.
However, there are guidelines that holiday firms must adhere to when imposing these extra charges. The increase must be directly related to specific costs, must be applied no later than 20 days before the departure date, and if the increase surpasses 8% of the holiday cost, travelers have the right to cancel without any charges.
Moreover, if a holiday company includes this provision in their terms, it can also benefit the customer. The regulation affirms that “If the organizer reserves the right to increase the price, the traveler is entitled to a price reduction if relevant costs decrease.”
Several holiday firms, including Trailfinders, Destination2, and Jet2holidays, have assured consumers that they will not impose surcharges. Loveholidays and easyJet have also stated their intentions not to add extra fees. However, Lastminute.com mentioned that while they will not impose surcharges, additional costs by airlines cannot be guaranteed.
Prospective British holidaymakers are cautioned that booking holidays this year, especially in high-demand destinations like Spain, may be pricier than usual.
Due to the Middle East situation causing a more than twofold increase in jet fuel costs, consumers might face higher expenses as airlines pass on these costs. Fuel shortages could lead to flight cancellations and increased ticket prices.
Which? advises consumers to prioritize quality over price when booking holidays during uncertain times and opt for firms with strong customer service.
TUI and Booking.com have been approached for comments. If you have a story to share, email us at webtravel@reachplc.com.
