Why the holiday you’ve already paid for could cost hundreds more
STERLING’S increasingly rocky ride on the currency markets means holidaymakers should brace themselves for a bill of possibly hundreds of pounds on top of the amount already paid for a package deal this autumn.
‘Surcharge’ rules in the small print of holiday terms and conditions allow travel firms to demand 8 per cent on top of the original price. Those who have forked out £3,500 for a holiday could now end up having to pay almost £300 extra for the trip.
Using the excuse of fluctuating exchange rates, higher fuel costs, tax changes and other new fees, travel companies can add on these sneaky charges – all perfectly legally – and accepted by industry trade body the Association of British Travel Agents.
Experts fear there may be a wave of hikes in the coming weeks as Britain prepares to leave the European Union on October 31.
Members of Abta must absorb the first 2 per cent of any increase in vacation costs caused by the weak pound. But a firm can still end up demanding holidaymakers pay an 8 per cent surcharge on top of the total paid – right up until 20 days before departure.
If a firm charges more than this extra amount, customers have the right to cancel and claim a full refund with no penalties.
Major operators such as Mark Warner Holidays slapped holidaymakers with a surcharge of up to £50 following a drop in the value of sterling against the dollar and euro after the 2016 referendum.
Its booking conditions state: ‘Price increases or decreases after booking will be passed on by way of a surcharge.’
Those offering ski trips, including Wasteland Ski and Gower Tours, which also previously hit customers with surcharges, could also strike again this autumn. Wasteland terms and conditions say: ‘We reserve the right to increase the price of your holiday after you have booked.’ Gower explains: ‘The price of your travel arrangements may change after you have booked.’
Other tour operators, including Jet2 Holidays, Lastminute and Loveholidays, offer similar phrases. In the terms and conditions Jet2 admits: ‘We reserve the right to change the price of your holiday.’ Lastminute explains: ‘The price of your package may change after you have booked.’ Loveholidays tackles the risk of a future price hike by saying: ‘We may change the price of your package after we have issued our booking confirmation.’
In contrast, outfits such as British Airways Holidays, Thomas Cook and Tui, have gone out of their way to assure clients they will not be levying surcharges later this year. For example, Thomas Cook has a ‘Brexit price guarantee’ not to hike prices ‘no matter what happens’.
Naomi Leach, travel expert at consumer body Which?, says: ‘Millions who have already paid for a package deal could be in for a nasty surprise if travel firms use this little-known rule to charge hundreds of pounds extra for existing bookings.’
An Abta spokesman says: ‘The situation around Brexit is evolving. It is impossible to predict the impact it may have on costs.’