Luxury agents divided on surcharge issue

30-May-08 Christy Wyatt

More than 30 ABTA members have introduced the charges, with many citing currency and fuel variations as the cause.
“Members only surcharge if they absolutely have to,” said Frances Tuke, PR manager for ABTA.
“It is not good for customer relationships and can be complicated to administer, so tour operators will only do this if their survival depends on it.
“Many take a view that it would be better for their company overall to absorb the losses.”
The Package Travel Regulations of 1992 insist tour operators absorb increases of up to 2% of the client's holiday cost.  In addition ABTA requires its members to offer customers an alternative holiday or a refund if they want to add more than 10% of the client's holiday cost.
Cox & Kings Travel introduced fuel surcharges last week to prices originally printed in the brochure.
“The surcharge levels depend on the destination and the airline in question,” said Laura Smith, PR and publications executive, Cox & Kings Travel.
This only applies to new clients, as Cox & Kings is absorbing all fuel surcharges for clients that have already paid in full. 
However, Smith added: “We are having to introduce a surcharge on some European holidays due to the recent increase in the value of the Euro.
However, only two AITO members have implemented surcharges so far - Just Sardinia and All Leisure Group.
 “The majority of AITO members wouldn't even contemplate [implementing surcharges] because of the sheer time and aggravation involved,” said an AITO spokesman.
David Wickers, director of Bridge and Wickers, said they would continue to monitor the situation.
“Of course fuel charges will affect everyone, but seen as a percent of the overall cost of a luxury long haul holiday ‘down under’ I think their impact will be far less than many short haul holidays, especially those three to four times a year weekend breaks to destinations served by the low cost carriers,” he said.