Upmarket holiday company Mark Warner hit the headlines in December when it was announced that customers who had booked their package holiday months ago would be asked to pay a £50 per passenger surcharge to offset against the cost of Brexit and the subsequent fall in value of the pound compared with the euro and dollar. There has been much discussion in the press about prices in general of holidays having to rise as hotel rooms, fuel and coach hire will cost more, but Mark Warner is the first company to impose a surcharge on customers who have already booked. So what rights do customers have if their travel company decides to impose a surcharge?
Check the Contract
When you pay the deposit or balance of a holiday, whether in a travel agent or online, there will be a lengthy terms and conditions section which sets out the surcharging policy and what you may be expected to pay. Often, there is something written into the contract that says if the surcharge is over a certain percentage of the cost of the holiday, you have the right to cancel and get a full refund. The tour operator may also allow you to transfer your holiday arrangements to a more affordable destination, assuming there is capacity. Less than that percentage, you must pay up or lose your holiday. The ABTA industry standard is 10% of cost. There are also rules about when you must be informed about the surcharge, usually at least 30 days before your departure date. On the flip side, should the pound suddenly become much stronger against the euro and costs for tour operators rapidly fall, the guidelines state that any savings over 2% should be refunded to the customers.
Fuel Surcharges
Oil prices are at a historic low, but in times where fuel prices are rising, holiday operators and airlines are allowed to pass increased costs onto their passengers too. The same rules apply as with currency fluctuation charges, and if the fuel surcharge is more than 10% of the cost of the flight, you have the right to cancel and get a refund. If you’ve already booked accommodation for your holiday or have fixed plans, then you may have no alternative but to stump up the extra cash.
Can I Insure Against Surcharge?
Unfortunately, travel insurance will not cover you if your tour operator writes to you asking for a surcharge to cover currency fluctuations or fuel. Cancellation is covered under certain circumstances only, usually in the event of illness of the passenger or a family member. The insurance company will not pay out if you have to cancel a holiday because of surcharges, pay the surcharges for you. Although surcharges are not as common in 2017 as they were a few years ago, it’s always wise to bear in mind that there is the possibility of being asked for further payments, and to keep back some funds in case you are asked to pay.