ABTA is set to join forces with the Federation of Tour
Operators to lobby for the abolition of a Government rule requiring operators
to fund supplier surcharges.
By law, operators must absorb up to 2% of the cost of
the holiday, but rising airport and airline security costs in the wake of the
US terrorist attacks are causing fears among operators that their profit
margins will be wiped out.
FTO secretary-general Alan Flook, who has written to
the Department of Trade and Industry detailing operators’ fears, said: “The
last thing we want to do is levy surcharges, but in the current situation we
are suffering terrible uncertainty. As brochures go to press there’s no longer
any guarantee prices will be the same as when holidaymakers book and we just
can’t live with funding 2% of all holidays.”
Senior ABTA officials met last week to discuss the
ramifications of passing the cost of supplier surcharges on to holidaymakers,
but a final decision on the change was due to be made an ABTA board meeting in
Lisbon on Sunday.
Some members oppose the move, believing some operators
will use surcharges as a marketing tool, or concoct surcharges to boost
profits.
However, one operator who did not want to be named
said: “Most operators only make 2% on each holiday, so if airlines pass on the
cost of higher security charges and airports put their charges up we will see
our profits wiped out.”
Board members were also due to debate whether to
change the current rule governing notice periods for surcharges. Currently,
tour operators cannot surcharge a client within 30 clear days of departure, but
ABTA wants to change this to 20 days.
Both alterations will require a change to ABTA’s Code
of Conduct and the Package Travel Regulations.
ABTA chief executive Ian
Reynolds said: “I expect most people to agree to the changes, but board members
will make up their own minds.”