Regulation 10 of the Package Travel Regulations 2018 is implied into every package travel contract. The price cannot go up after the contract is made unless the contract:

• expressly allows an increase

• limits increases to direct results of changes in fuel or other power costs for passenger transport, taxes or fees charged by third parties not directly involved in the package (including tourist taxes, landing taxes or embarkation fees at ports and airports) or exchange rates relevant to the package

• gives the traveller a right to a price reduction if those costs fall before the package starts

• explains how changes are calculated.

Notice and the 20-day limit

Whatever its size, an increase can only be made if the organiser notifies the traveller clearly, with a justification and a calculation, on a durable medium no later than 20 days before the package starts. If costs fall and the traveller is owed a reduction, the organiser may deduct administrative expenses from the refund but must give proof of them if asked.

Increases over 8%

If an increase is more than 8% of the total price, regulation 11 applies. The organiser must tell the traveller without undue delay and give a reasonable period to respond. The traveller can accept or terminate without a termination fee, and may take a substitute package if one is offered. If they terminate and do not take a substitute, all payments must be refunded within 14 days.

Worth knowing

ABTA’s Code of Conduct used to require members to absorb an amount equal to 2% of the holiday cost before passing on a surcharge. ABTA removed that rule in July 2024, and clause 3J now points members to the Regulations. The amendments to the Regulations that take effect on 6 April 2027 do not change regulations 10 or 11.