Price Gouging: Holiday Firms Labelled "Tourism Sharks"

Posted on 20 April 2017

'Price gouging' – the process of increasing holiday prices during school breaks – is an emotive subject. Harnessing the frustrations reportedly felt by some, politician Michael Gove recently called holiday companies "tourism sharks".

Does his comment have any basis?

The former education secretary wrote of “unscrupulous tourism firms who try to rack up costs” in his newspaper column and called for “better regulation of that market”.

However, the chief executive of the Association of British Travel Agents (ABTA), Mark Tanzer, refuted the remarks.

"Supply and demand"

Tanzer said: “The reason that prices are so much higher in the summer months is due to high demand. It is not just British holidaymakers who want to travel at this time but many of our European neighbours also choose to holiday in July and August when good weather is virtually guaranteed.”

Tanzer also said ABTA members see the value in staggered summer holidays, so that not all school children end up taking breaks at the same time.

“This system has worked well in other countries, such as France and Germany and has helped to alleviate some of the sharp peaks in pricing, expand the travel window and ease the pressure on family budgets.”

The issue of parents taking their children on holiday during term time has been in the headlines recently, following the Supreme Court case involving Jon Platt. Platt took his daughter on an unauthorised holiday to Disney World in Florida during school term time in April 2015; a panel of judges ruled unanimously against him.

Opinion is divided on the subject of term-time holidays – not least among our own single trip and annual travel insurance customers. Some want stricter policies on school attendance.

Fairer prices on peak-season getaways have also been called for.

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