During the latest Hot Topics webinar, Matt, Krystene and Nick took time to answer as many of your questions as they could, and while due to the volume of queries they couldn’t answer every single one, they have put together their ‘Hot Topic Takeaways’ …
FUEL SURCHARGES
In order to be able to pass fuel surcharges on to passengers who have purchased a package holiday, you must:
Expressly state within your T&Cs that such an increase may be made (as well as state the other requirements listed in Reg 10(2)
- If it’s not stated in your T&Cs – you cannot charge for it.
Ensure that the price increase does not exceed 8% of the total package price
- If you try and pass on more than an 8% increase to the customer, they can cancel the booking and are entitled to a refund of all monies paid
- If the increase is 8% or below, the customer is obligated to accept it. If they do not, they can choose to cancel, but your standard termination fees will apply.
- You may choose, from a commercial perspective, to absorb some of the price increase, to ensure that no more than 8% is passed on to the customer. This is, however, solely a business decision.
- There is no obligation to ‘absorb the first 2%’ – unless this is something you have chosen to state in your T&Cs or is a holdover from where that was a requirement under the ABTA Code of Conduct.
- You can only apply the 8% increase once. It applies once per contract.
N.B. The above applies in relation to package travel contracts between an Organiser and a consumer. The matter of fuel surcharges applicable to any other service or relationship will be governed by the terms stated within the specific contract.
FCDO ADVICE AND TRANSITING VIA THE MIDDLE EAST
Which Government advice applies?
There is no specific rule or guidance as to which government advice should be followed or applied. Common sense would say that if you are dealing with UK passengers, you should adhere to UK FCDO advice, however that is not stated anywhere in writing. A court will look at all evidence.
I have a client that wants to travel despite FCDO advice against it– what do I do?
i) check your own Public Liability insurance position. Does it cover you if customers travel against FCDO advice. This is very important!
ii) Provided your insurance covers you, ensure that you have evidence that the customer is aware of the position and still wises to travel. This does not have to be a formal ‘waiver’, but could simply be in an email chain.
iii) Bear in mind that customers own travel insurance may be invalidated – you should remind them to check that.
What if the customer is already in resort, and then FCDO advice changes?
The general rule here is that you will have to have regard to what the facts of the situation are. Sometimes it may be that customers can finish their holiday and return home as planned. Alternatively it may be that there is a push from UK Government to get people back ASAP (and in those cases government arranged repatriation flights may be put on. As such, you should assume that you will be called upon to at least look at alternative return dates. Pro-rata refunds are typically needed in those situations, and the reasonable cost of such other arrangements are also likely to fall on you.
Again, check your public liability position on this point.
How far in advance of departure can a customer cancel under Reg 12(7) and expect to receive a refund?
There is no given timescale; it could be anywhere from 7 days to 3 months (perhaps more). The question that needs to be applied is ‘whether there is a reasonable possibility that the holiday can go ahead as planned, without any significant changes’. As soon as it becomes clear that it cannot – then the customer can cancel and obtain a refund. The travel industry has often adopted a 21 day “rolling” period for this kind of situation, but it is not an official practice and will be subject to the facts of any given situation.
REPATRIATION AND NECESSARY ACCOMMODATION
If a customer had booked business class flights, but I can only obtain economy flights to get them home (noting this has in fact cost me more than the business class flights were originally worth) – do I have to provide them with compensation?
The Regulations require you to provide ‘repatriation of the traveller with equivalent transport without undue delay and at no extra cost to the traveller’. Strictly speaking, therefore, the class of flights should be the same. However the current war in the Middle East was unlikely a consideration when the Regulations were drafted! If this was to play out in front of a judge, the argument would be that this was a crisis situation, you got the customers home safely, you incurred additional cost in doing so.
Same with accommodation – do I have to put customer up on the same star rating accommodation? And on the same board basis?
The Regulations state ‘the organiser must bear the cost of necessary accommodation, if possible of equivalent category’
As such, if it is possible to obtain accommodation of the same category – you should. But it is not a strict obligation. Likewise, it is necessary accommodation – so the priority is to ensure the customers are looked after and safe until they can travel home – not to have another free weeks’ holiday in a 5* All Inclusive.
And I just have to cover 3 nights’ accommodation, right?
Not necessarily. The starting point is 3 nights’ accommodation, however where a different period is specified in the Union passenger rights legislation applicable to the relevant means of transport for the traveller’s return, (for example EU261) then for the period specified in that legislation. That means that if an affected flight that is part of your package is a UK or EU airline, the net result is that the three nights you thought you might be responsible for is in fact unlimited.
Further, these limits do not apply to persons with reduced mobility, any person accompanying them, pregnant women and unaccompanied minors, as well as persons in need of specific medical assistance, provided that the organiser has been notified of their particular needs at least 48 hours before the start of the package.
This article was originally published on: 1 May 2026
