Term time holidays

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What do you all think would be a viable proposal to put forward to the governent regarding term time holidays? There was a school who had all their inset days over one week to help parents to book a cheaper week away - would this be a good idea do you think, or can you think of a better idea?
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Schools could look at having some sort of flexible week in June or September, where parents could take their kids away, and for those that don't go away on holiday, the school can do some sort of life learning education, outside of the normal curriculum. That way nobody misses out on their core education.
There are no price rises during school holidays. The prices are discounted the rest of the year to attract more business.
If they charged any lower prices during peak periods these companies would struggle to survive and lots of people would loose their jobs. Companies such as Haven already close during the winter months due to low demand.
Also Centreparcs only make around 5% profit a year and that is with an almost 100% occupancy rate throughout the year. So if they had to reduce prices they would certainly make a loss and collapse!
These companies charge higher rates when demand is high (School Holidays) which revert back to standard rates for the rest of the year which then get discounted when demand is low or competition is high. It is no different to any other business. It is just that Parents with school age children are mainly forced to buy when the demand is at it's peak.
I think Takman has probably got it right - prices are lower outside of school hols, to increase business, not higher in school hols. However, it's up to holiday companies what they charge. If people didn't pay the 'inflated' prices, they'd have to bring them down.