Low dep holiday cancellation charges should reflect how much money the business is actually losing.

ngs986

Having read some earlier replies to a similar situation I too feel I have been caught in the "trap". Innocently I booked a low deposit holiday in January for a holiday in September. I have now decided I wish to cancel. I paid a low deposit of £100 thinking that this would be all that I would lose if I decided not to go. Not the case! It really isn't clear in the documentation when you first book and I'm sure many have been caught like this before me. 
However ...
1. The "well-known company" want another £400 to cancel now  (..6 months  or 24 weeks in advance of booking ) This is clearly well out with the usual % time cancellation policy.
So they are asking me to pay a total of £500 if I cancel now. The actual holiday only cost just under £1200!!!
2. Did some research and...according to the Consumer Rights Act, firms must make sure their terms are fair and don't give the business an unfair advantage over the consumer. If the terms are considered unfair under the law, the consumer can't be forced to abide by them. So for a holiday firm, unfair terms would include:

a. Disproportionately high cancellation fees. Any cancellation charges should reflect how much money the business is actually losing from the cancellation. If the fee isn't in proportion to its losses, its likely to be considered unfair.
b. Large non-refundable deposits. Again, the amount of money withheld through a deposit should be in proportion to how much the business is losing. If a firm takes a large deposit and refuses to refund any of it regardless of how much its losing, or why the customer cancelled, this is also likely to be seen as unfair.

So what do you think my chances are and if I pay this money will I get it back or some of it back from them? I do feel this full deposit is disproportionately high in relation to the overall cost of the holiday.  Looking forward to hearing all your thoughts. Thank you!

bradders1983

The percentage of how much the deposit is is totally irrelevant, as an example its £60 per head with Jet2 regardless if the package is £300pp or £1500pp.

Simple solution is to actually read what you are agreeing to, crazy idea I know.  

As an aside, which company is asking for a £500 total deposit here, and how many travellers is this?

Pollycat

There is no 'trap'.

Holiday companies charge a deposit on booking.

Sometimes (I suspect to generate more bookings), they offer a 'low deposit'.

Every company I've booked with have been very clear that I've paid a low deposit and the balance of that deposit will be due on x date.

And have been very clear that upon a wish to cancel by me, that balance of deposit will still have to be paid.

The fact that you didn't understand the documentation is not the fault of the holiday company.

The fact that 'many have been caught' before you is irrelevant - that is not the fault of the holiday company.

You don't say which 'well-known company' you've booked with (my guess is TUI).

I booked a package with TUI (on-line).

They were very, very clear that the £100 I paid at the time of booking (Jan 2020) was a low deposit and that the remainder of the deposit (£300) was due mid February.

Would you have preferred to have had to pay £500 deposit at the time of booking?

bagand96

Who did you book with?  How did you book?

ngs986

Thank you for your replies. The holiday was booked on line with Tui. I note your comments and must say had expected such responses. Nevertheless no one has commented on this in relation to the Consumer Rights Act. (Points a and b above) Why should the consumer have to pay almost half the cost of their actual holiday ? Yes it was a cheapie but consumers buying holidays at £5000 (same time frame) would not pay almost £2500 deposit to cancel? This is disproportionate surely?

comeandgo

ngs986 said:

Thank you for your replies. The holiday was booked on line with Tui. I note your comments and must say had expected such responses. Nevertheless no one has commented on this in relation to the Consumer Rights Act. (Points a and b above) Why should the consumer have to pay almost half the cost of their actual holiday ? Yes it was a cheapie but consumers buying holidays at £5000 (same time frame) would not pay almost £2500 deposit to cancel? This is disproportionate surely?

It would take staff the same time and effort to process your holiday and one costing four times as much.  

ttoli

As a former Branch Manager for 2 High Street Travel agents I can assure you that the Low Deposit scheme is clearly explained to each client ( failure to do so is a disciplinary offence ) , Yes it is to generate more bookings 

ngs986

Sorry I think you may have missed my point..... where does the Consumer Rights Act come in then? I'm not arguing about the low deposit scheme just its complete unfairness. The Act clearly says... "Any cancellation charges should reflect how much money the business is actually losing from the cancellation" My holiday would be a loss to the travel company of circa £500, but a holiday of £5000 value under the same terms would be a loss to the travel company of circa £4500.....so to be fair then higher value holidays should be paying greater deposits!

zagfles

ngs986 said:

Sorry I think you may have missed my point..... where does the Consumer Rights Act come in then? I'm not arguing about the low deposit scheme just its complete unfairness. The Act clearly says... "Any cancellation charges should reflect how much money the business is actually losing from the cancellation" My holiday would be a loss to the travel company of circa £500, but a holiday of £5000 value under the same terms would be a loss to the travel company of circa £4500.....so to be fair then higher value holidays should be paying greater deposits!

It's the usual here, people being whoosed and the usual predictable "it's all your fault for not reading what you signed up to" etc.

To answer your actual question, see the MSE news item here which gives advice on what to do: https://www.moneysavingexpert.com/news/2019/04/holiday-firms-warned-over-unfair-cancellation-rules/

I suppose in the current climate, the tour operator may argue they'd have difficulty reselling the holiday or would have to discount it significantly, and so the loss to the business could be the full deposit...

leylandsunaddict

You really can't innocently book a low deposit holiday. Its made very clear that it is a low deposit and the date the remainder of the deposit is due by. 

How many people is the booking for? 

NoodleDoodleMan

I've just had a look at para. 8 of my TUI booking agreement for a package in May.

I assume it's identical to every other similar TUI deal ?

The second sentence ;

"If you have taken advantage of a low deposit offer, you must pay the full deposit amount stated in the payment details by the outstanding payment date or immediately upon cancellation. All payments must be made by the required due date(s)."

Seems straightforward enough (to me at least) and the full deposit requirement, rather than the low deposit on cancellation is also clear enough.

I can't see how paying only a £100 down payment on a £1500 deal is fair or reasonable to the supplier when a customer wishes to pull out of a contract.

Just my opinion. others may, and often do, disagree !!!