Thomson and Thomas Cook add fuel surcharges

Thousands of families will have to pay hundreds of pounds more to go on holiday this year as the UK's major tour operators add fuel surcharges to their flight pricesThe modern habit of taking annual family holidays abroad is under further threat after the UK's biggest holiday companies announced fuel surcharges that could add as much as �160 to the price of a long-haul trip.The charges come as oil prices soar to a record high of $114 a barrel, pushing up the cost of fuelling aircraft and cruise liners alike.Package giants Thomson and Thomas Cook are adding the supplements for customers of their charter airlines, ranging from �15-�40 a person depending on the duration of a flight. Other companies are likely to follow suit.The increases follow hard on the heels of British Airways' unveiling of fuel surcharges of between �75 and �125 a person.Rochelle Turner, head of research at consumer organisation Which? Travel, said many families will think twice about whether they can afford a holiday."It is a lot of money to find for just getting to your destination. With all the uncertainty surrounding Libya and whether the unrest could spread to Saudi Arabia and other big oil producing countries, the price of oil could easily escalate further. People might find they won't be able to travel anywhere, never mind just going on holiday."Turner predicts a new mindset among families with an annual trip likely to be saved for as a special treat, as in previous generations. "Families are facing job cuts and higher energy and food prices, and now this. With the weak pound also making some holidays more expensive they may even question whether they can afford to go away," she said.On the plus side, the UK economy may benefit with more families holidaying at home instead. Tourist organisation Visit England said it was encouraged by signs that more people are planning to stay at home.Thomas Cook has slapped on the surcharges for all new bookings, while Thomson and its First Choice division will apply theirs on 4 March. Both operators are charging an extra �15 a person on short-haul flights (less than three hours) to destinations such as Spain and Portugal, adding �60 to the cost for a family of four.Trips to the likes of Greece and Egypt will attract an extra �25 a person, while long-haul vacations with flights, such as to the US and Cuba, will add �40 a person or �160 to the bill for a family of four.Thomas Cook said its hand was forced by the 40% rise in aviation fuel over the past year. Ian Ailles, chief executive of Thomas Cook UK & Ireland, said: "We've worked hard to keep the impact of the rising fuel costs on our holidaymakers to a minimum, but the fuel levy is an unavoidable result of the rising price of oil."The company previously applied surcharges in 2008, but reduced them to between �5 and �15 for bookings for summer 2009 and none were applied in 2010.The International Air Transport Association said that the impact of rapidly rising oil prices is a serious threat to earnings in the airline industry. It predicts net profit will fall from $16bn in 2010 to $8.6bn in 2011. Although IATA predicts passenger numbers will rise by 5.6% this year, it fears profit margins will be hit, putting carriers under further pressure.Consumer affairsFamily financesThomas CookTravel & leisureOilguardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

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