Travel operators are facing sharp accusations of "profiteering" as the boss of a major ferry company makes a bold announcement condemning the practice. Christophe Mathieu, the chief executive of Brittany Ferries, has declared it is "absolutely the unacceptable face of capitalism" for firms to hike prices amid global uncertainty.
Ferry Firm Vows Stability Amid Fuel Shortages
Brittany Ferries has pledged it will not raise prices in the coming months or be disrupted by fuel shortages, despite the ongoing conflict in the Middle East. The company, which connects British ports like Portsmouth, Poole, and Plymouth with France and northern Spain, has secured the "vast majority" of its fuel at a fixed price through hedging strategies. This approach limits the impact of soaring oil costs, a move not taken by some competitors.
Criticism of Rival Operators
Mr. Mathieu accused other transport providers of acting like "bad gamblers" who are "looking to others to cover their losses" after failing to hedge fuel prices. He emphasised that Brittany Ferries' suppliers have "guaranteed the free-flow of all maritime fuels," ensuring operational continuity. In contrast, rival ferry operator DFDS indicated it would attempt to absorb higher costs but warned that "ultimately, we are going to have to share that pain until prices drop again."
Some airlines, such as Virgin Atlantic, have imposed fuel surcharges on passengers in response to higher oil prices, while others like KLM have cancelled flights due to fuel shortage concerns. Mr. Mathieu stated, "If you have booked with us, or are considering doing so, we will get you to a beautiful and safe holiday destination this year. Period." He added that the company will not engage in profiteering or seek to recover losses from poor financial gambles.
Inflation and Consumer Impact
Brittany Ferries noted that the cost of its holidays rose earlier this year solely due to inflation, with no further increases planned in the weeks or months ahead. The company reported a 37% increase in reservations over the past fortnight for July and August sailings, suggesting many families are "abandoning the volatility of travel by air" in favour of more stable ferry options.
Market Trends and Price Pressures
Meanwhile, travel company On the Beach revealed that its prices for package holidays in the next three months are an average of 10% cheaper compared to the same period last year. An analysis of 11,500 holidays found they were typically £110 cheaper than a year ago. Caspar Nelson, a holiday expert at On the Beach, advised consumers, "This is a rare, sunny spot for consumers right now and our advice is quite simple: now is the right time to book and lock in your price."
A senior travel industry source noted downward pressure on holiday prices in destinations closer to the Middle East conflict, such as Cyprus, Turkey, and Egypt. However, prices are expected to rise closer to the summer peak period, aligning with increased demand. Higher fuel prices are projected to have driven an increase in the Consumer Prices Index inflation to 3.3% in March, according to expert consensus, with official figures to be announced by the Office for National Statistics.
