Mistake on Holiday Website: Should We Have to Pay Extra?
A.C asks

My wife and I looked on various websites for a cheap holiday for the two of us and our two children. We found a good deal for a holiday to Fuerteventura which was fairly cheap, but not ridiculously so. As such we booked it. The details on the email confirmation mention the flight out, the flight back and the hotel accomodation. It specifically states that there is no transfer included, which suits us as we always hire a car for our independence.

Late this afternoon I received a call from a representative of the holiday company stating that there had been a mistake on their websites and that the flights were not included in the price. He said if we still want the holiday we need to pay more money, which in effect more than doubles the cost of the holiday. He said I could have time to think about it and pretty much pressured me in to contacting him again tomorrow.

As far as I am concerned, they made the mistake. I booked a holiday at a certain price. The flights are on the email confirmation. Can they charge me extra like this? The cost of the flights obviously hasn't changed, but they obviously, (and they have admitted so), made a mistake and didn't charge us for them.

Now we could just walk away and have a refund, but we were looking forward to this holiday and I don't feel I should have to walk away. I thought companies had to honour the price at point of sale. Do I have a right to demand the holiday at the price we booked it at? What was a good deal, with their price hike, way more expensive than their competitors.

When a holiday price turns out to be wrong

You spot a bargain online, book your holiday, and then receive an email saying there was a pricing error. The company wants you to pay more or cancel. Where do you stand legally?

This situation comes up regularly with holiday bookings. Your rights depend on how contract law treats advertised prices and whether a binding contract actually formed between you and the company.

Advertised prices are not always binding

In UK contract law, a price shown on a website or in a brochure is usually what lawyers call an invitation to treat. This means the seller is inviting you to make an offer to buy at that price. It is not a firm promise to sell.

When you click to book, you are making an offer. The company can then accept or reject that offer. If they notice the price was wrong before accepting, they can refuse to honour it. Where payment has already been taken but no contract formed, the company would still need to refund the amount collected.

A similar principle applies in physical shops, where a wrong price label does not oblige the retailer to sell at that price. Online transactions differ in important ways, though, because the acceptance process is documented digitally and governed by specific terms and conditions.

Some businesses choose to honour mistaken prices, particularly for smaller amounts, to avoid complaints and bad publicity. But they are not required to do so by law.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

When does the contract actually form?

The key question is whether a binding contract existed before the company tried to change the price. This depends on when acceptance happened.

With online bookings, the company's terms and conditions usually set out when a contract forms. Common approaches include:

  • When you receive a confirmation email
  • When your payment is processed
  • When the company sends a separate acceptance message after reviewing your booking

If the terms state that the contract only forms when they send a specific confirmation, and they spot the error before doing so, they may be within their rights to cancel or request more money.

If a contract has already formed, the position changes. The company would generally need to honour the agreed price, unless the mistake falls under the legal concept of "obvious error." This applies where the pricing mistake would be apparent to a reasonable person. Courts consider whether any ordinary consumer would have recognised that something had gone wrong with the price.

What you can do

Check the confirmation emails you received and read the terms and conditions carefully. Look for wording about when the contract becomes binding. This will help you understand your position.

If you believe a contract was formed and the company is refusing to honour it, raise a formal complaint with them. Set out the facts clearly, explain why you believe a contract exists, and keep copies of all correspondence.

Should the complaint not resolve matters, you may be able to use an alternative dispute resolution scheme. Many travel companies belong to ABTA or another trade body with a dispute resolution service. You can also consider a claim through the small claims court if the amount involved makes this worthwhile.

For general guidance on consumer rights, the Citizens Advice website provides helpful information. You can also report misleading pricing practices to Trading Standards through the Citizens Advice consumer helpline.

Losing what seemed like a genuine bargain is disappointing, and the financial difference can be significant. But companies do have legal protection when genuine errors occur. Your options will depend on the specific facts and timing of your booking.