Fuel costs set to hit future holiday prices

Operators predict knock-on effect as fuel prices escalate

2001/2002 packages face biggest impact

Fuel costs set to hit future holiday prices

Report by STEVEJONES

OPERATORS are expected to increase prices for winter 2001/2002 in the wake of the escalating cost of fuel.

And they warned there are likely to be slight increases in the third-edition summer 2001 programmes, due out at the end of the year.

A JMC spokesman said customers will see increased prices if the cost of fuel continues to rise and the dollar remains strong against the pound.

“It’s a fluctuating situation but there may come a time when we have to pass on some of the cost to the customer,” he said. “There is likely to be a knock-on effect.”

First Choice managing director Dermot Blastland said slight increases of £2 per person may be added to third-edition brochures.

But he said the bigger impact would be felt when pricing winter 2001/2002 and summer 2002.

“We bought the majority of fuel for 2001 in advance,which has meant the impact on prices for next summer has been minimal,” he said.

“We could see small increases in the third edition but if the underlying cost continues to go up it will start to have a larger effect in winter and summer 2002.”

Thomson also admitted prices could be affected in third-edition brochures and warned of higher prices in subsequent seasons.

A spokeswoman added the price differential between Florida, long haul and short haul will be greater because of cost of fuel.

Heathrow, Stansted, Gatwick and Manchester were largely unaffected as fuel is piped direct to the airports. Edinburgh and Glasgow airports were running perilously low on fuel when the blockade was lifted.

Holiday Hypermarkets managing director John Donnelly reported a dip in bookings mainly because its stores are out of town, while Travelcare general manager Yvonne Rankin also said bookings had fallen.

Southwest-based Lets Go Travel started issuing tickets on departure and suspended any new orders for currency, passports and visas.