Ruling could mean price hikes as well as cuts

TRAvEL experts predicted last night that the High Court ruling could be a double-edged sword.

If families can take children out of school without fear of fines, the surges in demand which allow travel firms to increase their prices during school holidays will level out.

This could lead to holidays becoming cheaper during peak periods but could also push up prices during term time.

A recent survey by travel money firm FairFX found that family package holidays to popular destinations currently cost as much as double their normal price if taken after schools break up for summer. Only yesterday its figures showed that prices rocket by more than 100 per cent in Spanish and Portuguese resorts. Air fares, in particular, can more than triple during school holiday periods, leaving a family of four facing a bill of around £2,000 just for flights to Spain, Greece or Italy on a budget airline.

In the UK, dedicated family holiday operators such as Center Parcs have been criticised for charging £700 for just three nights during half term. But airlines and tour operators insist they have always used complex and sophisticated technology to ensure prices reflect demand. The systems are likely to increase off-peak fares to meet growing demand at these times.

Ian-Strafford-Taylor, chief executive of FairFX, said: ‘Now we’ve had the High Court say it’s essentially not lawful for parents to be fined for taking their kids out of school during term time, we could see cheaper family holidays all year round. It’s a case of supply and demand and if parents are prepared to take their chil- dren out of school then demand for holidays could be spread more evenly across the year.’

A spokesman for ABTA, the UK’s largest travel association, said it had been campaigning for the education system to stagger school holiday dates by area or region.

She said: ‘This system already works well on the continent. This would help to flatten out the extreme spikes caused by increases in demand, particularly in July and August.’

The court ruling comes at a difficult time for the travel industry amid a slowdown in tourists caused by fears about terrorism – attacks over the past year in Paris, Tunisia, Turkey and Egypt have reduced demand for flights and holidays.