There is a lesser-known provision in package holiday terms and conditions that might result in a substantial increase in the cost of a package holiday, even after booking and payment have been completed.
A recent report from Which? shed light on this obscure clause embedded in the Package Travel Regulations. According to the clause, UK holiday companies are allowed to impose an additional charge of up to 8% on the total cost of a package holiday without offering the option of a free cancellation under certain circumstances.
These circumstances encompass scenarios like a destination introducing new taxes or additional costs, significant fluctuations in currency exchange rates, or a surge in fuel or power expenses. Given the current rise in fuel prices due to the ongoing conflict in the Middle East, there is a possibility that package holiday providers could invoke this clause for British holidaymakers who have already secured their bookings if these costs persist.
In the event of an 8% increase, a family of four who have spent £2,500 on a holiday could potentially be required to pay an extra £200 to the holiday provider or risk having their holiday cancelled.
However, there are specific rules that holiday firms must adhere to if they intend to levy these additional charges on consumers. The increment must be directly linked to particular costs, must be imposed no later than 20 days before the departure date of the holiday, and if the price hike exceeds 8% of the holiday cost, travelers have the right to cancel without any penalty.
Moreover, if a holiday company includes this clause in its terms and conditions, it can also work to the advantage of the customer. The regulations stipulate that “If the organizer reserves the right to increase prices, the traveler has the right to a reduced price if there is a decrease in relevant costs.”
Which? reached out to several holiday firms seeking reassurance for consumers with existing bookings. Companies like Trailfinders, Destination2, Kuoni, Jet2holidays, Olympic Holidays, and Beachcomber Tours assured Which? that they would not impose surcharges. On The Beach and BA Holidays also confirmed their commitment to refrain from adding these fees.
Loveholidays stated that it had no plans to impose surcharges, while easyJet mentioned that it did not intend to do so in 2026. Lastminute.com clarified that while it would not add surcharges, it could not guarantee that airlines would not introduce additional costs.
Prospective British holidaymakers who have yet to book their vacations this year have been cautioned that booking might be more expensive than usual, especially in high-demand destinations like Spain.
The surge in jet fuel prices, attributed to the Middle East situation, is expected to be passed on to consumers, potentially resulting in flight cancellations due to fuel shortages and increased costs arising from reduced seat availability.
For consumers booking holidays during uncertain times, Which? advises, “Consider that the cheapest option may not be the most reliable, especially in case of travel disruptions. Opt for a company known for its excellent customer service.”
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