NEWS 1
Mark Warner will add surcharges to ski breaks
YOU NEED TO KNOW
AT A GLANCE Surcharging: the rules
l Tour operators can impose an additional fee after a holiday is booked if the cost has risen due to a significant fluctuation in exchange rates, transportation costs or taxes.
l Package Travel Regulations tightly control surcharges. Companies can only surcharge up to 30 days before departure, must absorb the first 2% of total holiday cost and its terms and conditions must state its right to surcharge.
Agents shocked by Mark Warner’s ski surcharges
Juliet Dennis
juliet.dennis@
travelweekly.co.uk
Agents face “embarrassing and difficult” conversations with clients following Mark Warner's unexpected decision to levy a surcharge on ski breaks.
Travel agents said they were
caught unawares by the operator’s move to add a charge of up to £50 per customer for holidays departing from early January. The fall in the value of sterling
since June’s Brexit result is believed to be the most likely cause, with the pound now worth €1.19, compared with €1.31 in May. Craig Burton, managing director of agency and operator Ski Solutions, said: “We didn’t expect this; it has come out of left field. We
are disappointed and surprised. It reflects poorly on Mark Warner and on agents like us.” Gemma Antrobus, chairwoman of the Association of Independent Tour Operators’ Specialist Travel Agents arm, said: “It’s a really embarrassing conversation to have with clients. It could have a really negative impact because we are the bearers of the bad news.” Neil Basnett, Elite Travel Group
chief executive, said: “We’ve not been in this situation for years. “It’s our worst nightmare to tell someone the price of their holiday has gone up. Very often customers who have spent thousands will kick off, even if it’s a low amount.” Burton said he did not expect other operators to follow Mark Warner’s lead. “There is absolutely no evidence
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travelweekly.co.uk 15 December 2016
“Often customers who have spent thousands will kick off, even if it’s a low amount”
of any of our other main ski partners adopting a stance like this. We are also an operator and there is no way we will be surcharging. This is probably the last resort,” he said. But Alan Bowen, legal adviser
to the Association of Atol Companies, warned: “I suspect there will probably be other operators in the same situation. “Brexit came as a shock, and
the reality is that if you are a small ski operator and costs go up by more than you expected, it’s very difficult to absorb.”
l Abta’s code of conduct says that even if a client has paid, the operator can ask for a surcharge within that 30-day period, of up to an extra 10% of the cost.
l If the price increase is “significant” (Abta interprets this as more than 10%) holidaymakers must be given the opportunity to cancel.
Bowen warned: “People will talk
to each other in resort. If you are the only ski operator surcharging, winter might be difficult.” Mark Warner refused to comment but managing director David Hopkins is reported to have told clients in letters the surcharge was “necessary and unavoidable for the first time in many years". Since June’s referendum, seven
operator members of Abta have announced they are surcharging, but no major trade brands. Mark Warner is not an Abta member. Crystal Ski, Tui and Thomas Cook have no plans to surcharge. A Cook spokesman said: “Our financial planning teams buy foreign currency months ahead, so we’re better able to protect customers from sharp movements in exchange rates.”
PICTURE: SHUTTERSTOCK
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