Business Wednesday, Apr 29

Looking to go on holiday this summer? Experts predicting holiday havoc thanks to war in the Middle East, warn that holiday prices can rise – after you’ve booked.

The devil is in the detail, according to an investigation by the Tonight programme, which reveals that small print in package holiday deals means firms can increase prices after you thought the deal was done. Jo Rhodes, travel expert with consumer group, Which? says: “The package holiday providers can ask for more money even after you’ve booked. Up to 8% of what you’ve paid. Anything over that and you have a right to cancel for a full refund.”

According to the Association of British Travel Agencies (ABTA) and Which? the surcharge is allowed for specific cost increases, including fuel, taxes or exchange rates, provided it’s in the terms and conditions. The war with Iran also means popular holiday hotspots like Dubai, Turkey and Cyprus are facing an uncertain summer.

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The UK government is advising against travel to within 10km of the Turkish border with Syria, “due to fighting and a heightened risk of terrorism”. And, after a drone struck RAF Akrotiri in Cyprus in March, travel company SPL villas saw an 80% drop in searches for holidays there.

Airline Lufthansa has cancelled 20,000 flights this summer to save on jet fuel. Aviation analyst John Grant says: “It’s unprecedented. We’ve got this domino effect of disruption.” Russian airspace is closed to most airlines. Ukraine is closed and there are closures in the Gulf region and Iran. Aircraft flying across the Middle East are using two narrow routes to navigate around conflict zones.

Knock-on effects include longer journey times. John says: “The bigger issue if this continues, will be the availability of jet fuel.” In the UK, airlines have called on the government to provide emergency support, because the Strait of Hormuz – a key route for jet fuel coming out of the Middle East – has been heavily disrupted by the war.”

Meanwhile, knowing your rights is essential for travellers. Jo Rhodes explains: “I’d really advise people to consider a package holiday. If anything goes wrong, you’re protected by the package travel regulations. If you do want to book things separately, it’s a really good idea to fly with a UK or EU airline because, again, you get more protection.”

Travel insurance is essential, but people must read the small print. Jo says: “Only a third of policies actually cover war or conflict.” Travellers should also be aware of the “known event clause.” Jo says: “If you know about a situation before you travel, this could make you less entitled to claim later.”

Travelling to a destination against government advice could also impact your cover. UK staycations have enjoyed a surge in interest because of global unrest. One traveller, Andrew Holland, tells Tonight a UK holiday makes perfect sense.

Beverley holiday park in Devon has seen a surge in bookings. But director Claire Flower still fears increased bills, rates and wages, combined with a possible tourist tax – currently being considered for England and already in place in Scotland and Wales – could make UK tourism tricky. Claire says of a potential tourist tax: “Customers are going to find it difficult to pay that little bit more.”

At Lincombe Hall hotel and spa in Torquay, Devon, manager Peter Watkins told Tonight that their £60,000 annual energy bill will soon soar and force him to increase prices on spa days, while trying to keep overnight stays the same.

He says: “There’s a limit to what people can pay. We’d rather get people in and let them enjoy themselves than price ourselves out of the market, but we’ve got to remain profitable.” The new system designed to track every non-EU traveller – including those from the UK – entering the 29 European countries comprising the ‘Schengen’ area is another added hassle.

British travellers have to stop, register their details and submit biometric data the first time they enter the Schengen area. Reportedly taking far longer than expected, some passengers have missed flights and airports and airlines warn the system could struggle to cope during peak months.

The European Commission told Tonight: “Europe now has the most modern IT Border System in the world. The core purpose is to make our borders more secure and protect EU citizens.”

*Tonight- Holiday Havoc: Where Should You Go? On at 7:30pm, Thursday, ITV and ITVX

Expert travel tips

-Reduction in demand for holidays in the Eastern Mediterranean, because of global unrest, means there are cheap deals. Luke Fitzpatrick, from Perfect Getaways in Liverpool, says: “We have seen Turkey and Cyprus coming up with really good prices from around £249 per person [for a week].”

-Travel expert Chelsea Dickinson advises picking places that are cheap when you get there, saying: “A place for me that ticks all those boxes, that has fantastic links from all over the UK is Poland. Other places could be Bulgaria, Albania. In central and Eastern Europe, there are so many gems where your money could go a lot further.”

-Consider traveling outside the school summer holidays. Tonight compared one week all-inclusive trips to Greece and Spain across four major operators and found families could save an average of £689 in Greece and £381 in Spain, by going a week before school holidays start.

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