With airlines monitoring fuel supplies amid challenges from the Middle Eastern conflict, many families worry about holiday prices rising. A travel boss has warned that increasing fuel costs could lead to higher ticket prices. Consequently, holidaymakers who have not yet booked may be affected, but those with existing bookings could also see price hikes under certain circumstances.
When Can a Travel Company Increase Prices?
Passengers booking package holidays should be aware that providers can raise prices even after you have booked. The good news is that there are regulations governing this process, including how the company must notify you and your option to cancel.
In England, your cancellation rights typically depend on the booking's terms and conditions. However, Citizens Advice states that package holiday customers might be entitled to cancel without a fee if:
- The holiday company makes significant changes to the holiday.
- It increases certain prices after booking.
- The passenger cannot reach their destination due to exceptional circumstances.
If a travel firm wants to change the price after booking, it can only do so if permitted under the terms and conditions. Citizens Advice explains: "Check the terms and conditions for the holiday to see if they allow the company to increase the price. Look for something like 'price variation' – this means the price can change. They cannot increase it if the terms and conditions do not allow it. Even if they allow price increases, the company can only increase the price because of: fuel price rises affecting transport costs, changes to taxes or fees by third parties like tourist taxes, or exchange rates affecting the holiday price."
Notification and Cancellation Rights
According to Citizens Advice, the company must notify you in writing and give you a reasonable time to decide whether to accept the change or cancel. Sometimes a holiday firm may offer another package, but they must tell you how much it costs. They are also required to notify you of the price change at least 20 days before the holiday begins and explain the reason for the increase.
The guidance states: "The company must tell you about the price rise at least 20 days before the package starts and explain why they put the price up. You have the right to cancel the holiday without paying a fee if the increase is more than eight per cent – you will get back any money you have already paid."
