Brits could be hit with unexpected extra costs on their summer getaways, even after fully paying for package holidays, due to a little-known clause in travel terms and conditions. This provision, highlighted by consumer group Which?, permits holiday firms to impose surcharges of up to 8% under specific circumstances, including rising fuel prices.
Understanding the Package Travel Regulations Clause
The clause, embedded within Package Travel Regulations, allows UK holiday companies to increase prices without offering free cancellation in three key scenarios: when destinations introduce new taxes or costs, during significant currency fluctuations, or if fuel or power expenses surge. With ongoing conflicts in the Middle East driving up fuel costs, there is a real risk that firms might invoke this clause for already-booked holidays.
Potential Financial Impact on Families
If the full 8% surcharge is applied, a family of four who spent £2,500 on a holiday could face an additional £200 charge. Failure to pay could result in cancellation of their break. However, regulations stipulate that any increase must be tied to specific costs, charged no later than 20 days before departure, and if it exceeds 8%, travellers have the right to cancel for free.
Consumer Protections and Firm Commitments
Interestingly, the same clause can benefit customers: if a holiday firm reserves the right to raise prices, travellers are entitled to a reduction if relevant costs decrease. Which? contacted several major holiday providers for reassurance. Trailfinders, Destination2, Kuoni, Jet2holidays, Olympic Holidays, and Beachcomber Tours all committed to not surcharging customers. On The Beach and BA Holidays made similar pledges, while Loveholidays and easyJet stated no intentions to impose fees in 2026.
Lastminute.com noted it wouldn't add surcharges itself but couldn't guarantee airlines wouldn't impose extra costs. For those yet to book, holidays may be pricier than usual, especially in high-demand destinations like Spain, due to jet fuel costs more than doubling from Middle East tensions, potentially leading to flight cancellations and higher seat prices.
Expert Advice for Uncertain Times
Which? advises consumers to prioritise firms with strong customer service over the cheapest options, particularly during travel disruptions. TUI and Booking.com were contacted for comment but have not yet responded. This situation underscores the importance of reviewing terms and conditions when booking to avoid unexpected expenses.
