Travel industry chiefs have warned that holiday prices could rise even for those who have already booked, due to increasing fuel costs linked to the war in Iran. The conflict has disrupted oil supplies, raising fears of cancellations, delays, and disruptions this summer.
Emma Brennan from ABTA, the travel agent and tour operator trade association, told BBC Money Box Live that package travel regulations allow companies to increase costs via a 'fare charge'. However, she noted this is rare and subject to strict rules: the increase must be in the terms and conditions, cannot exceed 8% of the total holiday cost, and if exceeded, a refund must be offered.
According to Which?, a 14-night package holiday typically costs between £1,500 and £2,000 per person, meaning an extra charge of up to £160 per person, or £640 for a family of four. Airports Council International has warned that if the Strait of Hormuz does not reopen within three weeks, a systemic jet fuel shortage could become a reality for the EU.
Some airlines, such as Virgin Atlantic, have already imposed fuel surcharges, while KLM has cancelled flights due to fuel concerns. Susannah Streeter of Wealth Club said consumers are bracing for an energy crunch with potential long-term repercussions, including holiday plans ruined by a jet fuel crisis that could see thousands of flights cancelled.
