TOUR operators are expected to be forced to relax their cancellation charges after the Office of Fair Trading said it was launching an investigation into the matter.
The move follows a threat from the OFT director-general John Bridgeman that he would take legal action against airlines unless they abandoned practices such as changing flight times without compensation.
ABTA chief executive Ian Reynolds feared there would be a Government clampdown on cancellation charges imposed following a recent meeting with the OFT.
Airtours charges 100% cancellation fees for holidays cancelled between one and 21 days of departure, whereas Thomson retains 90% of the holiday cost or deposit for a cancellation of between one and 14 days.
Reynolds urged tour operator members to seek advice if they were approached by the OFT. “The last thing we want is random reactions to what is an industry issue,” he said.
n See pages 3 and 6