Hidden Holiday Clause Could Add Hundreds to Already Booked Trips
A largely overlooked clause in package holiday terms and conditions could result in the price of a package holiday increasing by hundreds of pounds, even after you have already made your booking and payment. This obscure clause, found within the Package Travel Regulations, has been highlighted by consumer group Which?, revealing that UK holiday companies can impose an additional charge of up to 8% on a package holiday price without being required to provide a free cancellation option under specific circumstances.
Circumstances Allowing Surcharges
These circumstances include:
- A destination introducing additional taxes or other charges.
- A significant shift in currency exchange rates.
- A rise in the price of fuel or power.
Given the ongoing Middle East conflict, fuel costs have been rising noticeably, which means there is potential for package holiday operators to invoke this rule for Britons who have already booked their holidays should these expenses continue climbing. Jet fuel prices have more than doubled owing to the situation in the Middle East, and these costs are likely to be transferred to consumers. A fuel shortage could potentially result in airlines cancelling flights, while reduced seat availability also drives up prices.
Impact on Holiday Costs
Should the full 8% increase be applied, it could mean a family of four who have paid £2,500 for a holiday might potentially have to hand over an additional £200 to their holiday package operator, or risk having their trip cancelled. Nevertheless, there are regulations that package holiday companies must adhere to if they wish consumers to cover these additional charges. The increase can only relate to specific expenses, it must be applied no later than 20 days prior to the holiday departure date, and if the price rise exceeds 8% of the holiday cost, then travellers are entitled to cancel without charge.
Consumer Protections and Company Responses
However, when a holiday company includes this clause within their terms and conditions, it can also benefit the customer. The regulations state: "If the organiser reserves the right to a price increase, the traveller has a right to a price reduction if there is a decrease in the relevant costs." Which? approached multiple holiday companies seeking reassurance for consumers with existing bookings. Trailfinders, Destination2, Kuoni, Jet2holidays, Olympic Holidays, and Beachcomber Tours confirmed to Which? their commitment to not imposing surcharges on customers. On The Beach and BA Holidays issued similar pledges and would not be introducing these additional fees.
Loveholidays informed the consumer organisation it had "no intention" of implementing surcharges, while easyJet stated it has "no plans to in 2026." Meanwhile, Lastminute.com clarified that although it would not impose a surcharge directly, it could not guarantee airlines would not add extra charges. Britons yet to arrange their holidays this year have also been cautioned they may encounter higher prices than normal when booking, particularly for destinations such as Spain experiencing unusually high demand. TUI and Booking.com have been approached for comment and are yet to respond at the time of writing.
Guidance for Consumers
Which? also offers this guidance for consumers when booking their holidays during unpredictable periods: "Bear in mind that the cheapest option is not necessarily the best, particularly in the event of travel disruption. Choose a firm that has good customer service." This advice is crucial as travel firms navigate rising costs and potential surcharges, ensuring holidaymakers can make informed decisions to protect their investments and travel plans.
