Stop the holiday rip-offs

TRAVEL industry bosses have been warned that they must find ways to reduce the high cost of summer family holidays.

The Government's action follows suspicions that the industry is profiteering from families who have no choice but to book a break while schools are closed.

Firms push up prices by as much as 170% once the school holidays begin in late July. Yet parents are being told by the Government that they must not take children out of classes.

The demands are backed up with fines of £100 for parents who take children out of school without permission. Some schools are even going to the extreme of threatening expulsion. Consumer Affairs Minister Gerry Sutcliffe spelt out his worries about summer holiday prices in a meeting with industry leaders.

A Department of Trade and Industry source said: 'The high price of holidays during school breaks was on the agenda.

'He is concerned about the price differentials on the same holidays between when 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.

'It is early days, but local education authorities can work with the travel industry to get discounts on holidays for parents of particular schools on a loyalty basis.

'Money off would be available to families which stick with the same travel agent or company.'

The Department of Trade and Industry denied suggestions that Mr Sutcliffe had ordered an inquiry into high summer prices or asked travel giants to open up their books to prove they are justified.

He does not have the power to require them to hand over such financial data.

However, it is clear that the Government is concerned about the markups imposed on families who abide by the rules.

A seven-night holiday for two adults and two children at the three-star Hotel Miami on Ibiza costs £1,140.30 starting in term time on July 7. That almost doubles to £2,135 for a departure-a month later. For the same times, 14 nights at Port Bourgenay in France, including ferries, rises from £660 to £1,808 - a jump of 174%.

Families with children at private schools generally face fewer problems when it comes to booking holidays. They break up around two weeks before the state sector in the summer, allowing parents to benefit from lower prices.

Maggy Mead-King, of the lobby group Working Families, said: 'I do think parents are between a rock and a hard place.

'On the one hand, most do not like taking their children out of school in term time but, unfortunately, once it gets close to holiday time the prices do shoot up.'

Association of British Travel Agents spokesman Frances Tuke said: 'This is a simple issue of supply and demand.

'Prices rise when most people want to go on holiday and fall at other times of the year.

'Families with pre-school age children can find cheaper holidays outside term time.

'The travel industry is already forming partnerships with schools and parents to offer discounts during the summer.

A number of travel agents in Manchester, Glasgow, Surrey and beyond will offer discounts to particular schools under a loyalty scheme.

'At the same time, the industry does all it can by way of money off incentives and free child places to encourage people to book early, which do go very quickly.

'However, there is a culture of waiting to book a summer holiday in the hope of getting a discount.'

Sonia Davies, of TUI UK, which owns Thomson and Lunn Poly, said high prices during school holidays will remain 'a fact of life'.

She added: 'The fact is there are only so many flights and places to stay in.

'Consequently, when everyone wants to go on holiday at the same time, it is inevitable that prices are higher.

'Prices of holidays based in the UK are also more expensive. It is not just foreign packages.

'In simple terms, while the Government might like us to do something to bring down prices at this time, that is just not financially viable.

'The Office of Fair Trading has looked at this and found that higher prices in summer are simply the result of supply and demand.'

Shortly before Wednesday's market close, shares in First Choice were unmoved at 119 1/4p, MyTravel, formerly Airtours, was down 1/4p at 8 3/4p.