Holiday companies are facing increased costs thanks to the war in Iran
Jet2 has issued a major new announcement on flights and holidays in the wake of the war in Iran, which is causing a decrease in jet fuel supplies and an increase in prices. On Friday, Jet2 said it will not introduce surcharges on any booked flights or holidays to cover cost increases, telling customers that the price they book is the price they will pay.
Amidst speculation that some airlines and travel companies may introduce surcharges, which would mean their customers facing additional costs after making a booking, Jet2 has removed the surcharge provision across all flights and holidays, even though the company has never previously applied them.
Today’s announcement means that Jet2 has pledged not to pass cost increases onto customers after they have booked. The policy applies to all flights and holidays booked through any channel whether online, via the mobile app, contact centre or independent travel agent.
It does not include tourist taxes, which are payable in resort at the time of the holiday and are paid directly to the accommodation provider.
Steve Heapy, CEO of Jet2 said: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2. As a result of today’s announcement, customers booking with Jet2 know that they are locking in their price without additional cost surprises later and we strongly believe that is the right thing to do by them. Ahead of a busy summer this is yet more evidence of why, on top of our incredible holidays and award-winning customer service, nothing beats a Jet2holiday.”
The announcement comes after travel industry chiefs warned that holiday prices could go up – even for people who have already booked.
Speaking to BBC Money Box Live, Emma Brennan from travel agent and tour operator trade association ABTA said: “There is something in the package travel regulations which just applies to package holidays, that travel companies could increase the cost of package holidays by what they call a fare charge. However, it very rarely happens, and there have been so many situations of disruption and uncertainty in recent years, and we haven’t seen this happening.
“And even if the travel company did choose to do it, there are quite strict rules around it. So, for example, it would have to have been in their terms and conditions, they can only do it up to the cost of eight per cent after that, and that’s a cost of eight per cent of the whole holiday – after that you would be offered a refund and it can only apply to various cost increases they are facing.”
According to Which? A 14-night package holiday can cost between £1,500 and £2,000 per person – meaning you could be asked to pay an extra £160 – or £640 for a family of four.
Airports Council International, which represents more than 600 airports, wrote recently to European commissioners for energy and transport and tourism, claiming that if the crucial Strait of Hormuz in Iran does not reopen in a “significant and stable way within the next three weeks” then “systemic jet fuel shortage is set to become a reality for the EU”.
Some airlines such as Virgin Atlantic have imposed fuel surcharges on passengers in response to higher oil prices, and others such as KLM have cancelled flights amid concerns about a shortage of fuel.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Consumers are bracing for an energy crunch, and there are fears that just like the credit crunch of 2007-2008, there could be a long tail of repercussions. In the immediate term, there’s the prospect of holiday plans being ruined by a jet fuel crisis which could see thousands of flights cancelled.
“Lufthansa has already scrapped a big chunk of routes, and there are worries tourist destinations could be hit.”
