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£ v € & $ - will TOs start surcharging?
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Poster:
A snowHead
Poster:
A snowHead
I've just seen that First Choice are giving £50 discounts for holidays booked on line. My concern is that their t&cs allow them to vary the price of the holiday, up to 30 days before you go.
The pound has lost over 16% to the Euro this year and 25% to the dollar, most of that in the past month. Accommodation will be paid in Euros ad airline fuel in $ (I realise that this is normally hedged). Are TOs going to pass the currency losses on?
Considering the exchange rate, many package deals now look cheap, especially with on-line discounts, but I don't want to book and then be clobbered for a surcharge.
Any TO staff want to comment, anonymously if preferred?
(Is that the most number of symbols ever in a thread title?)
Obviously
A snowHead
isn't a real person
Obviously
A snowHead
isn't a real person
bar shaker
, A lot of TOs negotiate their accommodation and then buy currency futures to reduce / eliminate the risk from currency fluctuations over the coming months. Their prices would be based on their 'locked in' cost of currency. I guess there may well be some companies who took more exchange rate risk, looking to pass on some extra cost, but I wouldn't think it'll be too big a deal industry wide.
The real fun will start if the £ stays this weak through 2009. If it does, holidays in the 2009 - 2010 season might be significantly more expensive.
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