Holiday firm changes price policy

Dominic Laurie
Reporter, Working Lunch

Florida is a popular spot for those seeking winter sun holidays

A tour operator owned by Virgin Holidays has changed its pricing policy after an investigation by BBC Two's Working Lunch programme.

Travel City Direct, a specialist in package deals to Florida, advertises deals on its homepage that include hotel, flight and a hire car.

However, mandatory insurance and taxes can add at least £60 to the price.

The firm says it will make clear in the future adverts that some additional items need to be booked separately.

New terms and conditions introduced

"The Travel City Direct advertised offers all made it very clear that the price of £369 excluded mandatory car hire taxes and insurance, as these costs vary according to the size of car chosen,' said a Travel City Direct spokesperson about the company's current lowest advertised offer of a £369 per person deal to Kissimmee in Florida.

"Our price presentation is similar to that used by many operators in the market. However, it has become apparent that these terms and conditions could be clearer for our customers. We have therefore decided to simplify the pricing we advertise."

Package prices must be inclusive

Trading Standards says non-inclusive pricing is misleading.

"If you've got a package holiday price then that price according to the law has to be accurate," says Bruce Treloar of Trading Standards.

"If that price is not accurate because there are mandatory extra charges added on afterwards, or as you go through the booking process, then that makes the headline price misleading."

Abta- the group that represents travel agents - says it's pleased with Travel City Direct's decision.

"Abta requires its members not to mislead its customers through any form of advertising," the organisation's Sean Tipton told Working Lunch.

"We are pleased that Travel City Direct has taken action to clarify and rectify its pricing in what can be a complicated area."

Rules set by the Office of Fair Trading also demand prices be all inclusive.

Ryanair, Easyjet, and others, have had to make changes to the way they quote their offers over the years.