THOMAS Cook has become the first operator to introduce
a supplement to battle rising fuel prices, adding £20 to the cost of an average
family holiday.
The company has slapped a £5 per person – including
children – supplement on all its tour operating brands for new bookings. The
decision comes after oil prices hit fresh highs last week following terrorist
attacks in Saudi Arabia.
The move is likely to prompt rivals to follow suit.
TUI UK, MyTravel and First Choice are monitoring the situation. TUI UK commercial
director Derek Jones admitted: “It’s likely we’ll follow but we have to assess
the impact.”
In a letter announcing the news to agents, Thomas Cook
trade relations director Ian Derbyshire said: “Unfortunately we are now,
through the increases in fuel prices, faced with the prospect of passing
additional charges to our customers.”
The fuel supplement is shown as a separate additional
charge on agents’ booking screens.
A spokeswoman said: “It’s an industry issue affecting
everybody. It’s unfortunate for the customer but necessary for us.”
Agents warned the new supplement would make package
holidays an even more difficult sell.
Midconsort chief executive Charles Eftichiou said:
“Anything like this will be seen negatively by the public. Sales are already
down.”
Ilkeston Co-op Travel managing director Chris Smith
claimed other operators were “bound to follow suit”.
“The charge is justified but it will make it harder at
the point of sale,” he added.
Analysts said the move would not help the trade dig
itself out of a dour market.
One said: “It’s a dog of a market out there so
operators need all the help they can get. There’s too much capacity and it
looks like prices will have to rise, so there won’t be a great recovery in
2005.”
The move came as more airlines added surcharges to
fares.
Icelandair doubled its surcharge to £5.40, while
Singapore slapped on a $5 charge on all routes.
IATA members have
provisionally agreed to raise reference fares on interlinable tickets by
between 2% and 5%.