Booked package holidays could increase 8% due to cost of living crisis

Booked package holidays could increase 8% due to cost of living crisis

Price of package holidays that have ALREADY been booked could still rise by eight per cent, customers are warned

  • Would-be holiday makers face having to pay a cost of living crisis premium 
  • Holiday firms can charge a levy of up to 8% if their costs or taxes increase
  • Many holiday firms pay for hotels and flights using dollars which are poor value
  • Sterling has fallen 15% on the dollar and more than 5% on the Euro since April 

Hard-pressed consumers could face paying surcharges on package holidays they have already paid for due to Britain’s perilous economic situation. 

Industry experts have warned that travel companies may have to impose surcharges of up to eight per cent depending on the future cost of fuel, tax changes or even changes in exchange rates. 

Under current regulations, once the surcharge passes eight per cent the customer must be offered a full refund. 

One source told The Times: ‘Many, many tour operators pay for accommodation in dollars, making it a lot more expensive now than it was even a few months ago.

‘The reality is that many companies, especially smaller outfits, just don’t have wiggle room to absorb extra costs after the pandemic.’ 

Industry experts have warned that travel companies may have to impose surcharges of up to eight per cent depending on the future cost of fuel, tax changes or even changes in exchange rates

A second source added they have heard industry figures actively discussing surcharges for the ‘first time since Brexit’. 

Since April, the pound has collapsed 15 per cent against the dollar and more than five per cent against the Euro. 

Some of the larger tour firms such as Jet2and Trailfinders have said they will not impose any surcharges on any holidays that have already been sold. 

Though customers waiting to see if there are late bargains could find they have to pay more than if they booked in advance.  

Sunseekers have been warned that the cost of package holidays and flights could increase dramatically in the New Year. 

Jet2 has assured its customers that anyone who has booked a package holiday with them will not face any additional surcharge

Jet2, however last week said it was ordering 35 new Airbus A320neo aircraft worth $3.9 billion at list prices – with an option to more than double the numbers of jets it wanted. 

The airline predicts that despite the current uncertainty, people will want package holidays especially after the Covid-19 restrictions are fully lifted.  

The first aircraft are due to be delivered between 2028 and 2031. According to Reuters, the airline has received a ‘significant discount’ on the list price. 

Jet2 specialises in package holidays, all-in deals involving flights, hotels and sometimes meals, and these tend to gain in popularity when people tighten their belts as they offer certainty over prices. The Leeds-based company said it was confident about future demand.

Jet2 Executive Chairman Philip Meeson said: ‘The order reflects our confidence that we have a much-loved product built on sector leading customer service which we can continue to grow.’

Jet2 said the deal gave it certainty of supply of aircraft into the next decade.

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