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Thomson’s rivals refuse to ditch fuel supplements – 4 Jan 2007

Thomas Cook, First Choice and Airtours have so far refused to follow Thomson’s lead and ditch fuel supplements to make pricing more transparent.


Thomson is the first major UK travel company to scrap fuel supplements for summer 2007 holidays, with others predicted to follow.


But rivals this week insisted keeping supplements separate was more transparent, although First Choice admitted it was “keeping its options open”.


Meanwhile, Thomson is drafting a second letter to the Office of Fair Trading. Its first letter last September criticised the OFT for allowing operators to “rip off” customers with fuel supplements.


It is writing to the Department of Trade and Industry, Civil Aviation Authority and other groups to drum up support for a clampdown.


Thomson claims its prices have not gone up as a result of absorbing fuel costs because of group-wide cost-cutting.


Managing director Peter Rothwell said the aim was to make prices as honest as possible. “We’ve absorbed the costs; prices are the same,” he added.


Rivals continue to charge an extra £30 on short-haul and £65 long-haul for fuel.


Rothwell said Thomson may have to change if fuel costs rise, but urged rivals to follow suit. “We have to make sure we don’t become part of rip-off Britain.”


Somewhere2stay.com managing director Stuart Jackson said sister company Cosmos continued to charge for fuel, but added: “There will be a slow move to manage fuel costs differently.”


The Co-operative Travel Trading Group welcomed Thomson’s move. Chief operating officer Mike Greenacre said: “The Government should legislate to ensure all compulsory taxes and charges are shown in any advertised price.”

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