Package holiday costs could unexpectedly surge due to a lesser-known provision in the terms and conditions. This clause allows UK holiday firms to impose an additional charge of up to 8% on package holiday expenses without offering the option of a free cancellation under certain circumstances. These circumstances include the introduction of extra taxes or costs by the destination, significant currency fluctuations, or a rise in fuel or power expenses. With fuel prices on the rise due to the ongoing Middle East conflict, holiday companies might invoke this clause for travelers who have already booked if costs continue to escalate.
In the event of an 8% increase, a family of four spending £2,500 on a holiday could face an additional £200 charge or risk cancellation. However, there are restrictions that firms must adhere to when applying these extra fees. The increase must be directly related to specific costs, billed no later than 20 days before the departure date, and if the surge exceeds 8% of the holiday cost, travelers have the right to cancel at no cost.
Moreover, if holiday companies include this provision in their terms, it can also benefit customers. According to regulations, if the firm reserves the right to increase prices, travelers are entitled to a price reduction if relevant costs decrease.
Several holiday firms, including Trailfinders, Destination2, Kuoni, Jet2holidays, Olympic Holidays, and Beachcomber Tours, have assured consumers that they will not impose surcharges. Similarly, On The Beach, BA Holidays, and Loveholidays have stated they will not add extra fees. EasyJet mentioned no plans for surcharges in 2026, while Lastminute.com indicated it wouldn’t levy surcharges but couldn’t guarantee airlines wouldn’t introduce additional costs.
Prospective travelers are cautioned that booking holidays this year, especially in high-demand destinations like Spain, may be pricier than usual due to increased jet fuel costs resulting from the Middle East situation. Furthermore, a fuel shortage could lead to flight cancellations and higher seat costs for consumers.
Which? advises consumers to prioritize good customer service over the cheapest option when booking holidays during uncertain times. TUI and Booking.com are yet to comment on the matter. For sharing stories, contact via email at webtravel@reachplc.com.