Package Holiday Conditions to Be Wary Of

You think you’ve got your holiday booked, done and dusted, and that all you have to do now is to get your holiday reading organised and stock up on suntan lotion. Unfortunately, there are still things that can go wrong with a package holiday booking...

Oh No – The Price Has Gone Up!

This is a tricky area. If you bought your package holiday in good faith, sticking to your agreed budget, it can be galling to be asked for more money.

Legally, all holiday brochures (and this includes online brochures if you’ve booked on the Internet) must tell you the real price of your holiday - legibly, comprehensibly and accurately.

It’s technically a criminal offence for an agent or tour operator to give you misleading or false information about the price of your package holiday, whether it’s a deliberate act, or a negligent one.

If you’re faced with a request for more money for the same trip, you may still have to pay up. It all depends on where you are in the booking process. If the operator slaps a surcharge on you (quite likely given the oil price rises) you can legitimately refuse to pay it...if the booking has been confirmed.

If the tour operator hasn’t accepted the booking, and you have no official confirmation, there’s legally no contract and the operator is entitled to ask you for more money. Of course, you can tell them to take a hike, but it will mean they can cancel the holiday.

They are also entitled to increase the price of a package holiday to cover surcharges if there is a clause in the booking conditions. If so – you’re probably stuck with it, but they can only do this for one of four reasons:

• There has been an increase in fuel or transport costs
• The extra money is for fees or taxes (such as landing fees)
• changes in the exchange rate

The tour operator is also obliged to cover the first 2% of any price rise. You should also be given the opportunity to cancel the holiday if the increase in its cost is significant.

The operator can’t pass on any price increases in the 30 days before you depart.

They’ve Changed My Holiday!

When you receive a booking confirmation from a tour operator, whether by e-mail or in person, legally this means you and the operator (not the travel agent) have entered into a binding agreement.

If you receive notification that the holiday arrangements have been changed, you have a legal right to cancel if you’re not happy – or alternatively you can accept the changes if you’re happy about them. If you have no choice but to go ahead with the holiday, due to factors such as the amount of notice you’ve been given for example, you could still claim compensation when you return, but only if the changes leave you at a disadvantage – for example if you’ve been downgraded to a lower standard of hotel, or a hotel further from the attraction you booked the holiday to visit.

If you don’t say anything, the operator is within its rights to assume you’re happy about it, so if they’ve changed something you’re not pleased about, speak up before you go.

They’ve Cancelled My Holiday Altogether!

If the worst happens and you hear from the tour operator that your holiday has been completely cancelled, you have the legal right to ask for a full refund, and you should not be asked to pay a cancellation fee. If they offer you another holiday, it’s completely your decision whether you accept it – you don’t have to – and if you don’t, you can insist on getting your money back.

If you have to cancel your holiday yourself, there is usually a price to pay. Often you will lose your deposit or there may be a fixed cancellation charge (or a percentage, depending on how close you are to the date of departure). There’s nothing you can do about this – by cancelling you’re breaking the contract and the tour operator is within its rights to claim compensation from you.

Your confirmation agreement should state whether you have to pay a cancellation fee and how much. If the operator is a member of the Association of British Travel Agents (ABTA), they will also list the cancellation fees in their brochure (or on their website) somewhere.

If the agreement doesn't allow for cancellation at all, you will have to pay for the financial losses of the tour operator, which is harsh but not unheard of. If this happens to you, check your holiday insurance to see whether it covers the cost of a cancellation.

These are the worst case scenarios when it comes to what can happen before you leave for your two weeks in the sun, and most reputable companies are reasonable about such things. Just knowing your rights can often be a help in uncomfortable situations!