Haven pricing glitch

Emmalc

Hi everyone,

Just looking for some advice if at all possible please.

I booked a holiday with Haven on 19th August. I paid a £25 deposit and the total price of the holiday was quoted £87.75. I also got an email confirmation for this holiday.

Today (well yesterday now) 31st August I received a call from Haven. They informed me there had been a glitch while booking and the price quoted by them was incorrect. They informed me the holiday should actually have been advertised as £117.75 and gave me 2 options, either cancel the holiday and get a full refund (my £25 deposit back) or pay the corrected amount for the holiday. I advised them I needed to discuss with my partner so have not yet confirmed which option I want to take.

I went to the Haven website for a read of their terms and conditions and found 2 key sections of information.

First this

"What you'll pay
Like most things to do with travel, the prices of our holidays change depending on availability. You’ll find up-to-date prices here on our website, although we can only confirm the exact price of your holiday when you book. Once you’ve booked and have paid your deposit, we won’t change your holiday price unless the VAT rate changes, or unless we both agree. VAT will be payable at the prevailing rate on the date on which payment is made. Although we will confirm to you at the time of booking the price for the holiday including VAT at the current rates, if the VAT rate increases during the period to the start date of your holiday we may ask you to pay an additional amount to cover this increase."

Secondly this

"If we find out we’ve undercharged you significantly because of a mistake on our part, we’ll get in touch to put things right. We’ll give you the choice of cancelling your holiday for a full refund or paying the full price. And if we’ve overcharged you by mistake, we’ll give you back the difference in price. Don’t forget that you may have to pay extra for options like Prepaid Activity Bundle and bed linen – if this is the case, we’ll always let you know beforehand so there are no nasty surprises."

To me, these sections contradict each other. There was no mention of VAT increase. The section that says "undercharged you significantly" who decides what significantly is? The holiday has only increased by £30 but I don't think that this is a significant undercharging. Had I got a £500 holiday for £87.75 I could totally understand. Also, I am not happy about the amount of time it had taken them to contact me to let know about this price glitch.

As they caught me off guard, I didn't give an on the spot answer so need to call them back and let them know but do you think it's worth asking a few questions? Maybe speaking to a supervisor to see what they class as a being "undercharged significantly" and ask why it has taken 12 days to decide? Or should I just pay it? What would you guys do?

Thanks.

ARandomMiser

This does not appear to be VAT related however the first para does not necessarily rule out the second. The language is a bit woolly but could be read as E&OE.

I don't think the 12 days is unreasonable, but by all means ask a few questions, point to the first section but they may well come back with a reference to something else related to errors. They may however offer some form of gesture of good will - always remember though be pleasant and very indecisive to see what they may offer - maybe suggest they meet you half way?

Only you can decide if the new price is value for money and if you want to go ahead. If you want the holiday and the least hassle then you may have to pay it.

agrinnall

It's a 25% undercharge, I think most people would agree that is significant. The fact that the amount is only £30 isn't really relevant. I wouldn't make that argument when you contact them, you'll just have to hope for some goodwill gesture, and if that's not forthcoming either take the cancellation offer or pay the extra.

unholyangel

Regarding the paragraph about significantly undercharging/mistakes....perhaps it might make more sense to you if you understand about contract formation.

Basically a contract once formed (do the terms state what constitutes acceptance?) can only be void for very limited reasons. One of those reasons is a unilateral mistake - where one party is mistaken as to the terms of the contract and the other party is (or should be) reasonably aware that it was a mistake.

So a £500 tv priced at £50, that should be pretty obvious its a mistake. But if the same tv was £400, thats not obvious and as such, would not be void for mistake.

If the terms of the contract say a contract was formed and the mistake in price isnt obvious (whether its significant or not) then personally I'd be telling them that you have a legally binding contract and you expect them to provide the agreed services at the agreed price.

stugib

unholyangel wrote: »

So a £500 tv priced at £50, that should be pretty obvious its a mistake. But if the same tv was £400, thats not obvious and as such, would not be void for mistake.

Particularly for something like a holiday where companies change the prices almost daily depending on demand etc. I don't think £117 vs £87 is an obvious mistake in an elastically priced product.

bris

The key to this acceptance is on of the fundamental things that form the contract "consideration" did Haven ever consider selling this holiday at that price? No.


Consideration is really the main point when errors are made.

unholyangel

bris wrote: »

The key to this acceptance is on of the fundamental things that form the contract "consideration" did Haven ever consider selling this holiday at that price? No.


Consideration is really the main point when errors are made.

What you've just said directly contradicts the ordinary position of the law and nor is that a correct interpretation of consideration. The only way the law even remotely considers intent is whether you intend to create legal relations when agreeing to the deal itself - ie agreeing to meet friends down the pub is obviously not an intent to create legal relations.

The consideration is merely the benefit/detriment each party agree to - there are rules about what is valid consideration but there is no rule that the consideration needs to adequate, it only needs to be something of value - £1 for example.

Providing consideration has some value, the courts will not investigate its adequacy. Where consideration is recognised by the law as having some value, it is described as "real" or "sufficient" consideration. The courts will not investigate contracts to see if the parties have got equal value.

http://www.lawteacher.net/lecture-notes/contract-law/consideration-lecture.php

The page on mistakes in contract can be found here:
http://www.lawteacher.net/lecture-notes/contract-law/mistake-lecture.php

You will notice that not all mistakes will void a contract and the only time a unilateral mistake makes a contract void is when the mistake would have been obvious to the other party.

Also just checked haves T&C's and it looks like OP does indeed have a contract:

The agreement between you and Haven starts when:
1. We accept your booking and deposit – and give you a booking confirmation
or
2. We confirm your booking online or by phone
or
3. Your travel agent confirms your booking