The bosses of the UK’s three biggest holiday firms discuss the problem and how they are defending themselves against the surge in claims
Steve Heapy, chief executive, Jet2holidays
Q. What has caused the sharp rise in holiday sickness?
A. The big driver is that many of the claims management companies realised they can no longer make as much money off whiplash claims [fixed costs for personal injury claims made in the UK were introduced in 2013]. They looked for a new target and found gastric illness. Now they are encouraging and coercing holidaymakers into making false or severely exaggerated claims.
Q. What needs to be done?
A. We need to protect customers. They are often being put under immense pressure by CMCs, with many receiving treatment bordering on harassment.
Q. CMCs are telling customers that it’s a ‘victimless crime’. What’s your opinion?
A. Saying fraud is a victimless crime is ridiculous. It will cost everyone who goes on holiday more, so there are potentially 40 million victims. The few are spoiling it for the many.
Q. When are claims coming in?
A. They can often be three years after the date of the holiday. If you are genuinely ill, you don’t suddenly remember three years later. Your primary concern is getting better when you are in the resort, so you should go to the doctor or your holiday rep.
Q. What will happen if its isn’t tackled?
A. Prices will go up across the board. Car insurance went up 40% when whiplash went through the roof – that could happen to holidays. Hotels may stop selling all-inclusive packages – several are considering that – and they may refuse British guests. This is a British problem because of the British compensation scheme.
Q. Jet2holidays is fighting every claim it believes is false. It’s cheaper to pay out in some cases, so what would you say to operators thinking of taking the cost‑effective option?
A. If you pay out, you prolong the situation. If CMCs know you will pay out, they will put more claims in. It’s hard for smaller operators to do this on their own, but the more companies join together to fight this, the better. I’m very hopeful it will start to gain momentum.
Q. What action has Jet2holidays taken?
A. We’ve been lobbying the government to try to get the claims regime changed, so it becomes much less lucrative for CMCs. We have sent private investigators into resorts and are working with British consulates abroad, and the police, to curb touts’ activity. We are also working with hotels to ensure they have everything in place to defend claims.
Q. Can we win this battle?
A. We did with whiplash. The two issues are similar and it’s an easy change [to limit legal fees for claims made abroad].
