Hidden holiday charges

Extra costs being imposed by travel companies

British tourists heading to Europe can already expect to pay 20 per cent more than last year for food, drink and local services, but now the travel industry’s response to the pound’s slump against the Euro is resulting in excess charges before – and after you have booked your holiday.

The Association of British Travel Agents (ABTA) is letting companies impose extra charges to counter the strengthening euro and the rising cost of oil, as long as they have the correct clauses in their small print.

But should they really be allowed to backdate these charges on holidays that have already been booked? Already, 25 tour operators have been given permission to do so, including long-haul operators such as Bales, cruise companies such as Rembrandt Cruises, and school tour specialists such as STS and STG.

Before tour operators impose any charges they must absorb rises equal to two per cent of the holiday price. Beyond this, they are free to impose fees equivalent to 10 per cent of the holiday. Only if a tour operator wants to add more than that will travellers even be offered the option of cancelling their trip and receiving a refund.

The charges will no doubt result in a financial burden faced by British tourists heading to the euro-zone, and encourage those yet to book to travel to non-euro destinations instead. Could it also mean the decline of the package holiday?

An extra 10 per cent can be a lot of money for families who are already tightening finances. The UK Holiday Group says it is adding a "modest" surcharge of £3 per person a night between May and October. But such charges would force a family of five taking a week's holiday to pay an extra £105.

There is little to no chance, of course, that should the pound recover they will give that money back. A key selling point to a packaged holiday is that ‘what you see is what you get’– paying a set fee with no extras or hidden costs. For thousands of holidaymakers this summer, that may no longer be the case.

For more information and to see what companies are currently imposing these surcharges, visit: abta.com.