ABTA defends summer price hikes
The Government has asked tour companies to consider making changes to the way they operate so that their prices do not rise so sharply during school holidays.
Several of today’s UK newspapers report that the consumer affairs minister Gerry Sutcliffe “warned” firms that they must address concerns over prices, which can more than double as soon as the school summer holidays start – even though he is not in a position to enforce such a request.
The call comes just months after the Department of Education asked tour companies to consider making prices more even throughout the year, so that parents are less inclined to take their children on holiday during term time.
The Daily Mail quotes a Department of Trade and Industry (DTI) source as saying: “He (Sutcliffe) was concerned about the price differentials on the same holidays between when the schools are open and closed. He is not convinced the price gaps can be justified and wants to know why this is happening. He has asked the industry to go away and come back with some ideas as to how these holiday prices can be reduced.”
However, the Daily Telegraph quotes ABTA as saying: “If you look at the big travel companies’ financial results, you will see that they make a loss or only a tiny profit out of season. If they did not charge the higher prices during the peak season they would soon be out of business.”
And ABTA’s Sean Tipton, reacting to the Daily Mail’s “misreporting”, told News From Abroad this morning: “A meeting did take place, during which the minister asked if there were ways in which companies could look at the problem. But he did not issue a warning, and unless there was evidence of price-fixing or some sort of cartel – which there isn’t – he is not in the position to give a warning.”
Report by Tim Gillett, News From Abroad
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