Travel companies could increase the price of your holiday even after you have booked, industry chiefs have warned. There are fears of cancellations, delays and disruptions this summer as oil supplies are restricted by the war in Iran.
Prices of travel are expected to rise to cover the increasing cost of fuel, but industry experts have also raised the possibility that the price of existing holiday bookings could go up. That means people who have already booked and paid for their holidays being asked to pay more if they still want to travel.
ABTA confirms legal possibility of price increases
Emma Brennan from travel agent and tour operator trade association ABTA told BBC Money Box Live: "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."
Strict rules govern any price rise
Brennan added: "Even if the travel company did choose to do it, there are quite strict rules around it. 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."
Potential extra costs for holidaymakers
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.
Airport and airline warnings
Airports Council International, representing more than 600 airports, recently wrote to European commissioners for energy, transport and tourism, claiming that if the crucial strait 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.
Expert warns of 'jet fuel crisis'
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."
