The great package holiday rip-off!

Don't be fooled into believing package holidays always offer good value for money...

Since the British summer generally amounts to nothing more than a two-day “heat wave” when the great and the good of the country don their shorts, slap on factor 50 and cram onto the nearest beach like sardines in a particularly small tin, it’s no surprise that as July approaches people start scouring the high street and the web for holidays.

Many are tempted by package deals – let’s face it none of us have time to search for flights, transfers and accommodation and why bother when there’s a perfectly good travel agent willing to do it for you?

However, Trading Standards Services have found problems with pricing and availability of holidays advertised by high street travel agents.

It claims some travel agents advertise holidays that are not available, or are available at a higher price than that displayed in their windows.

And even those deals that do stick to the price advertised don’t always offer the best value for money.

So how can we be careful not to lose money on package deals and what should we be looking out for?

What you see is not always what you get

As the TSS found, often what is advertised in the windows of travel agents is not quite what is on offer. These deals are intended to lure customers inside but, once there, prospective holiday makers could find out that offer is “no longer available”. The TSS carried out a survey in north Wales and published the results last year. It found that there were some serious concerns in relation to the accuracy of holiday packages that were advertised by some travel agents.

The survey involved a mystery shopping exercise in which 37 travel agents were visited numerous times. TSS officers posed as customers and asked the travel agents about holidays advertised in their windows.

Eleven of these agents were found to have misleading advertisements and of the 97 holidays requested, 18 were said to be no longer available, 13 were available but at a considerably higher cost and seven were cheaper than advertised.

Further investigation by the TSS at agencies across the country found some considerable disparities in prices.

For example, a holiday advertised at £279 for 14 nights in Menorca was actually £309 and a £199 week-long holiday in the Algarve would actually set the customer back £229.

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There were further problems still when it was discovered that few holiday advertisements failed to make it clear that certain “optional extras” were not included in the price.

Less than complete package

If you opt for a package holiday you expect exactly that – a whole package. However, that may not be what you get. Several holiday firms do not include additional extras in the price of their package deals, something that they may neglect to tell you about. Indeed, your package holiday may initially be as basic as they come.

That £250 you thought covered everything may not include airport transfers, luggage charges or even in-flight meals.

Some companies are now charging as much as £10 per adult and £5 per child for food on flights. Add this to the £20 or £30 you can expect to pay for airport transfers and your cheap package deal is suddenly not so cheap.

These holidays are becoming known as “customised holidays”. Travel firms claim this gives the consumer more choice, but in reality it simply means those things you automatically assumed would be included in your package are now going to cost you extra.

Prices can change

Even those consumers who are aware of the additional charges they face could be in for a nasty shock. Some holiday-makers may find the price of their holiday increases before they’ve even reached the airport. Unfortunately holiday firms are well within their right to increase the price. HOWEVER, they can only do so if they adhere to strict guidelines.

According to the Package Travel Regulations 1992 the price can only be changed if:

• The contract includes a term which states that prices may change;
• This term also states how any price increase will be calculated;
• The price change is made at least 30 days before departure;
• The price increase is over 2%; and
• The increase is due to circumstances out of the agent’s hands - for example, changes to the exchange rate or increase in transportation costs.

If the contract does not meet all of these points then the agent cannot legally change the price of the holiday.

Cheaper to ‘package it’ yourself

The whole point of package holidays is that they are cheap and easy, but sometimes the consumer would do better to package the holiday themselves. While no one wants to trawl through holiday websites all day, a bit of thriftiness can go a long way.

For example, a week-long stay in a two-star hotel in Alicante, plus flights, departing on September 5th and arriving back in the UK September 12th, will set you back £353. But easyJet flights to Alicante – departing September 8th and returning September 15th - cost £61.81, while seven nights in a similar two-star hotel will amount to £169.47, giving a grand total of £231.28. This is a saving of £121.72, no small change.

So while you may be of the Peter Kaye school of thought when it comes to package deals (“booked it, packed it...” you know the rest!), don’t be fooled into thinking you’re always getting the best deal for your money.

On the other hand, if it’s convenience you’re after, then a neat little package deal may suit you down to the ground…just be prepared to get your euros out onboard the flight or you could be going hungry until you touch down.

More: Put these bargains in your suitcase | Avoid these holiday nightmares