Just because you have booked your break, doesn’t mean that is the price you will pay
Travel companies are allowed to incrase the price after you have booked
Travel industry chiefs have warned that holiday prices could go up – even for people who have already booked. There are fears of cancellations, delays and disruptions this summer as oil supplies are restricted by the war in Iran.
And there are concerns that prices of travel will go up to cover the rising cost of fuel. But industry experts have also raised the spectre of the price of existing holiday bookings going up.
That means people who have already booked and paid for their holidays being asked to pay more if they still want to travel. Emma Brennan from travel agent and tour operator trade association ABTA said the legislation allows companies to ask for more money.
Speaking to BBC Money Box Live, she said: “There is something in the package travel regulations which just applies to package holidays, that travel companies could increase the cost of package holidays by what they call a fare charge. However, it very rarely happens, and there have been so many situations of disruption and uncertainty in recent years, and we haven’t seen this happening.
“And even if the travel company did choose to do it, there are quite strict rules around it. So, for example, it would have to have been in their terms and conditions, they can only do it up to the cost of eight per cent after that, and that’s a cost of eight per cent of the whole holiday – after that you would be offered a refund and it can only apply to various cost increases they are facing.”
According to Which? A 14-night package holiday can cost between £1,500 and £2,000 per person – meaning you could be asked to pay an extra £160 – or £640 for a family of four.
Airports Council International, which represents more than 600 airports, wrote recently to European commissioners for energy and transport and tourism, claiming that if the crucial Strait of Hormuz in Iran does not reopen in a “significant and stable way within the next three weeks” then “systemic jet fuel shortage is set to become a reality for the EU”.
Some airlines such as Virgin Atlantic have imposed fuel surcharges on passengers in response to higher oil prices, and others such as KLM have cancelled flights amid concerns about a shortage of fuel.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Consumers are bracing for an energy crunch, and there are fears that just like the credit crunch of 2007-2008, there could be a long tail of repercussions. In the immediate term, there’s the prospect of holiday plans being ruined by a jet fuel crisis which could see thousands of flights cancelled.
“Lufthansa has already scrapped a big chunk of routes, and there are worries tourist destinations could be hit.”