Representatives from the travel industry have appeared on national radio to defend high prices during school holiday periods.
Presenter Jeremy Vine has been discussing the issue on his BBC Radio 2 show this week, asking how to stop parents taking their children out of school during termtime for holidays.
On yesterday’s show (January 30), several callers raised the issue of pricing being “impossible” during school holiday periods, and suggested holiday companies and travel agents lower prices during peak periods to address the problem.
On today’s show (January 31), Jeremy Vine brought on Sean Tipton, communications officer for Abta, and Richard Slater, managing director of Henbury Travel, to discuss whether it was possible to bring in a law preventing travel companies from putting up their prices in the summer.
Tipton said: “Travel agents ourselves don’t set the prices. Ultimately, they’re set by the hotels and other accommodation providers and the airlines.
He said it was “undeniable” prices go up during school holidays in line with increasing demand, but that these also coincide with times which are already “very busy” for others visiting friends and family, including Christmas, Easter, July and August.
More: Nine in 10 penalty notices issued for unauthorised family holidays
Vine asked Tipton whether the government should intervene and introduce a system for travel businesses comparable to gas companies, who are not allowed to increase their unit prices in winter, for example.
Tipton responded the holiday market was “not quite as straightforward as that” as he explained that, for tour operators negotiating with a hotel, the summer is the time of year when hotels make money “to make up for quieter times of year”.
He added: “The problem is, if you artificially put your prices up when demand is low, what would incentivise anybody to travel at that time of year?
“You cannot get away from the economic reality that prices increase as demand increases and I must stress as well in large parts of the year these hotels will be losing money.”
Tipton said he “had a lot of sympathy for parents” and advised them to book through travel agents as they will do their best to get the best price with free child places and lower-cost child fares, as opposed to what they would get going direct.
He added it was important to book as early as possible when rates tended to be lower.
This was echoed by Slater who said “the main thing” listeners needed to do was book as early as possible, as he noted up to 18 months in advance was currently available.
He added people should use their local travel agent to compare costs and find the best deals which are financially protected, or opt for a shorter holiday to go for “better quality rather than quantity”.
On the question of increasing prices during termtime and decreasing them during summer to help with the issue, he said: “This question has come up all the time, and if you increase the prices for the rest of the year, they’re going to go up dramatically to cover any deficit at other times of the year.
“It just does not work. It will not work.”
A hotelier called Ruud from Ottery Saint Mary also contributed to the discussion.
He said: “I’m a parent myself so I totally understand the issue.
“Most people would prefer to have the same price all year round as it would make life so much easier, but it’s just not feasible.”
He said the average price would “go up massively” and it would “simply be empty most of the year”.
He added: “It’s very much a matter of making the hay when the sun shines, and we have to be realistic.”
Picture of Jeremy Vine by BBC