Big Four face court threat over charges

Big Four face court threat over charges

Report by LOUISE LONGMAN

TOUR operators have been given 14 days to provide vital information on cancellation charges to the Office of Fair Trading or face legal action.

Following a 15-month probe, the OFT has ruled cancellation charges are too high and unfair. However, it says it has now reached "deadlock” with Airtours, Thomson Holidays, JMC Holidays and First Choice which have all refused to provide financial details justifying cancellation charges.

Operators are reluctant to give the information because they say it is ‘commerciallysensitive'.

The OFT will now go ahead with threats to take out a High Court injunction if operators fail to comply (Travel Weekly February 14).

Of particular concern is the 100% cancellation charge, whereby customers who cancel seven days or less before departure lose all their money.

Director-general of fair trading John Vickers said:”There are serious questions about the cancellation charges for package holidays sold in the UK.

"To examine those questions the OFT needs the full facts. But the tour companies have so far refused to supply the information. We are determined to get the relevant details and will take court action if necessary.”

A spokesman for the Federation of Tour Operators doubted whether the OFT had the right to demand commercially sensitive information.

"If the OFT does have this right, then operators are not going to break the law. But if that's not the case, then it's up to the individual operators.

"I could understand this if there was a more consumerist issue, such as surcharging, but to me it's not.”

Tour operators have always argued that if the 100% charge is lowered, fares will have to rise. They deny they are profiteering from the charges.

JMC Holidays said it was surprised at the OFT's actions because there is "constructive dialogue” between the two.

A JMC spokeswoman said: "In consultation with its relevant advisors, JMC Holidays will consider its response to this development carefully.”

A First Choice spokeswoman said: "The information requested by the OFT is complex and has taken time to finalise.

"It has been collated and supports our belief that our current scale of cancellation fees is fair.”

Thomson and Airtours said they will follow FTO advice.

Money for nothing: operators deny profiteering and claim that if the 100% cancellation charges are scrapped, they will be forced to increase the cost of holidays