Holiday surcharges
Holiday surcharges are back for the first time in 30 years because of the high cost of the euro and the rise in fuel prices, which means that even if you've already booked and paid for your holiday you could be asked by your tour operator to stump up an additional 10% that's 200 on a typical family holiday in the Med. Confused? Worried? Read on to find out if and how you are likely to be affected.
What are surcharges?
Holiday companies can charge customers an additional sum over and above the cost of the package if their costs increase significantly after the booking is made, usually due to currency fluctuations or a rise in the cost of fuel. Surcharges were common in the 1970s but this is the first time they've been imposed since the introduction of the euro.
Why is it happening now?
Two reasons. Firstly, the rise in the cost of the euro which has gone up almost 20% against sterling in the past 12 months. Secondly, the increasing cost of fuel, which airlines and cruise operators are passing on to the package holiday companies.
If I've already paid for my holiday in full, will I still have to pay a surcharge?
Yes. Operators can ask you for an additional sum of money to cover their increased costs up to 30 days before the departure of your holiday.
Sounds unfair, is it legal?
Yes, though ABTA members must apply to the Association for permission to surcharge and they must absorb the first 2% increase in any costs before asking customers to cough up the rest. Also, they must state in their terms and conditions (that's the small print, usually found at the back of the brochure) that they have the right to surcharge.
How much will I have to pay?
This varies but if the surcharge is for more than 10% of the total cost of the holiday you have the right to cancel your trip with a full refund.
Are all tour operators surcharging?
No. So far about 25 companies have been given permission by ABTA to surcharge including Bales Worldwide, Discover the World, a number of cruise operators and school tours specialists STS and STG. Other holiday firms that are not ABTA members may also be surcharging.
You're lucky if you're travelling with one of the biggest companies though both Thomson and Thomas Cook say they have no plans to surcharge for holidays this summer.
Some airlines have imposed fuel supplements. These include Thomson and First Choice Airways, which have increased the cost of flights by up to 30 return, British Airways has increased its fuel surcharge by 20 to 30.
How can I avoid surcharges?
You are less likely to be asked to pay a currency surcharge if you holiday outside the eurozone, though Bales Worldwide is surcharging customers travelling to Egypt because the Nile cruise operators it uses want to be paid in euros. The shorter your flight, the less likely you are to face a hefty fuel supplement.
Will I get a refund if sterling recovers or fuel prices drop?
Unlikely. There is no rule that states operators should refund clients if currency fluctuations work in their favour, but you could always ask your tour operator for your cash back and if you get lucky, let us know!
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