Holiday prices charged by Association of Independent Tour Operators’ members could be forced up next year as a result of the ban on credit card surcharging, according to chairman Derek Moore.
The revised EU Payment Services Directive, which will prohibit retailers from charging consumers for most consumer debit and credit cards, comes into force on January 13, 2018.
Holiday prices have already been predicted to increase in 2018 because of fluctuations in exchange rates and hoteliers putting up rates.
Aito operators say they will have to fund the cost of credit card transactions for clients they deal with directly while some are also paying an extra half a percent in commission to travel agents on trade sales, in order to support retailers who will be taking the brunt of the costs charged by the banks.
Moore said: “The general opinion is prices will go up; the cost has got to come from somewhere. I am surprised the government has implemented a measure which can only result in an overall increase in prices to cover costs imposed by merchant acquirers.”
Noel Josephides, chairman of Aito member Sunvil, predicted price rises could be between 8% and 10% next year or more for European holidays. He blamed price hikes by hoteliers and currency fluctuations, but said credit card fees were a contributory factor.
“We have never had such high price increases,” he said. “European hoteliers are now attracting markets they never dreamed of.”
More: Nine operators increase commission to mitigate credit card fees