A lesser-known provision in package holiday terms and conditions may lead to a substantial increase in the cost of a package holiday, even after it has been booked and paid for.
Which?, in an article, brought attention to a little-known clause within the Package Travel Regulations that allows UK holiday companies to impose an extra charge of up to 8% on the cost of a package holiday in specific situations. These situations include the introduction of additional taxes or expenses by the destination, significant fluctuations in currency values, or a rise in fuel or power costs, which have been on the rise due to the ongoing Middle East conflict.
In the event of an 8% increase, a family of four who has spent £2,500 on a holiday could potentially face an additional charge of £200 or risk having their holiday canceled by the package provider.
However, there are guidelines that holiday firms must adhere to if they intend to apply these additional charges. The increase must be directly linked to specific costs, must be implemented no later than 20 days before the departure date, and if the increase exceeds 8% of the holiday cost, travelers have the right to cancel without any penalty.
Furthermore, if a holiday company includes this clause in their terms and conditions, it can also work to the advantage of the customer. The regulations stipulate that if the organizer reserves the right to increase prices, the traveler has the right to a reduction if costs decrease.
Several holiday firms, including Trailfinders, Destination2, Kuoni, Jet2holidays, among others, have assured consumers that they will not impose surcharges. Loveholidays and easyJet have also stated their disinterest in adding surcharges. Lastminute.com, while not planning to add surcharges, could not guarantee that airlines might not introduce additional costs.
Potential holidaymakers are cautioned that booking holidays this year, especially in high-demand destinations like Spain, could be more costly than usual due to the increased cost of jet fuel resulting from the Middle East situation. This could lead to airlines canceling flights or raising ticket prices due to fuel shortages and reduced seating capacity.
For consumers booking holidays during uncertain times, Which? recommends selecting a reputable company with excellent customer service over the cheapest option to mitigate travel disruption.
TUI and Booking.com have been reached out to for comment. If you have a story to share, you can email us at webtravel@reachplc.com.
