Holidaymakers planning summer trips have been warned that package holiday prices can rise even after booking, according to an exclusive investigation by ITV's Tonight programme. The small print in many package deals allows tour operators to increase costs by up to 8% of the original price, citing factors such as fuel prices, taxes, or exchange rate fluctuations.
Price Hikes and Consumer Rights
Jo Rhodes, travel expert at consumer group Which?, explained: 'Package holiday providers can ask for more money even after you've booked. Up to 8% of what you've paid. Anything over that and you have a right to cancel for a full refund.' The Association of British Travel Agencies (ABTA) and Which? confirmed that surcharges are permitted if specified in the terms and conditions, specifically for cost increases in fuel, taxes, or exchange rates.
Impact of Global Conflicts
The war with Iran is causing uncertainty for popular destinations such as Dubai, Turkey, and Cyprus. The UK government advises against travel within 10km of the Turkish border with Syria due to fighting and terrorism risks. Following a drone strike on RAF Akrotiri in Cyprus in March, travel company SPL villas reported an 80% drop in searches for holidays there.
Airline Lufthansa has cancelled 20,000 flights this summer to save jet fuel. Aviation analyst John Grant described the situation as 'unprecedented,' noting a domino effect of disruption. Russian and Ukrainian airspace are closed to most airlines, and closures in the Gulf region and Iran have forced aircraft to use two narrow routes, increasing journey times. Grant warned that the availability of jet fuel could become a major issue if the conflict continues, and UK airlines have called for emergency government support due to disruption in the Strait of Hormuz.
Advice for Travellers
Knowing your rights is essential. Jo Rhodes advised: 'I'd really advise people to consider a package holiday. If anything goes wrong, you're protected by the package travel regulations. If you do want to book things separately, it's a really good idea to fly with a UK or EU airline because you get more protection.' Travel insurance is crucial, but only a third of policies cover war or conflict. Travellers should be aware of the 'known event clause,' which may reduce entitlement to claim if they knew about a situation before travel.
Travelling against government advice could also affect coverage. UK staycations have seen a surge in interest due to global unrest. Andrew Holland told Tonight that a UK holiday makes perfect sense. Beverley holiday park in Devon has experienced a booking surge, but director Claire Flower fears increased costs, including a potential tourist tax being considered for England, already in place in Scotland and Wales. She said: 'Customers are going to find it difficult to pay that little bit more.'
At Lincombe Hall hotel in Torquay, manager Peter Watkins faces a soaring energy bill, forcing him to increase spa day prices while keeping overnight stays the same. He stated: 'There's a limit to what people can pay. We'd rather get people in and let them enjoy themselves than price ourselves out of the market, but we've got to remain profitable.'
New EU Border System
British travellers will also face new hurdles with the EU's Entry/Exit System (EES), which requires non-EU travellers, including UK citizens, to register and submit biometric data upon first entry into the Schengen area. The process is reportedly taking longer than expected, causing some passengers to miss flights. The European Commission said the system aims to 'make our borders more secure and protect EU citizens.'
Expert Travel Tips
- Reduced demand for Eastern Mediterranean holidays means cheap deals. Luke Fitzpatrick from Perfect Getaways in Liverpool noted: 'We have seen Turkey and Cyprus coming up with really good prices from around £249 per person for a week.'
- Travel expert Chelsea Dickinson recommends destinations where money goes further, such as Poland, Bulgaria, or Albania, which have great links from the UK and offer good value.
- Consider travelling outside school summer holidays. Tonight compared all-inclusive trips to Greece and Spain and found families could save an average of £689 in Greece and £381 in Spain by going a week before school holidays start.
The Tonight programme 'Holiday Havoc: Where Should You Go?' airs at 7:30pm on Thursday on ITV and ITVX.
