Parliament to debate cost of term-time holidays as firms are accused of 'cashing in'

By Travelmail Reporter

Published: 06:52 EST, 24 February 2014 | Updated: 06:52 EST, 24 February 2014

Politicians are set to debate the controversy over travel firms charging families extra during term-time today, after firms were accused of ‘cashing in on school holidays’.

The debate was organised by the backbench business committee after an e-petition highlighting the importance of ‘family time’ received almost 170,000 signatures.

Priced out: The e-petition claimed that many families cannot afford to go away during the school holidays

The e-petition was created by mother-of-two Donna Thresher from Essex in March last year, who said she was ‘outraged’ by the £600 difference in the cost of taking her family away during the school holidays.

It stated: ‘Family time is so much more essential in the current working world, but so many people cannot afford holidays in school holidays.

‘A break at home is not the same as getting away from it all where there isn't any house work or DIY to get done, instead focus is on family. It's time to stop the holiday companies cashing in on school holidays and let parents have some guilt free family time!

‘Enforce action that caps the percentage increase on holiday prices in school holidays.’

The authors of the e-petition said responsibility for the policy area lay with the Department for Business, Innovation and Skills.

Quality time: Mother-of-two Donna Thresher argued that families need time away from their regular routines to reconnect

The Government department responded with a statement on its website, which claimed there was ‘fierce competition’ in the holiday market and that holiday companies seek to make a 'reasonable profit' during peak periods to make up for quieter periods.

It read: ‘In a competitive market it is for business to decide the market worth of their products and to price accordingly.

‘In the holiday market there is fierce competition for custom. Prices rises in peak periods are a reflection of the international competition holiday companies face for hotel accommodation and other services in destinations which are popular with consumers from many other countries and where there are limits to capacity.

'These consumers also wish to holiday during these peak periods. We are advised also that holiday companies must seek to make a reasonable profit during the peak periods so that they are able to operate throughout the year when demand and therefore prices and profits are lower.’

Sparking a debate: Donna Thresher's e-petition has received almost 170,000 signatures

The debate will take place today in Westminster Hall at 4.30pm.

It comes after the Department for Education tightened rules in England last September on when families could be granted leave for holidays, saying that such holidays could now only be granted in exceptional circumstances.

Parents will be fined for each day their child is taken out of school during term-time.

Liberal Democrat MP John Hemming called for a rethink of these changes. He said: ‘The new rules were brought in 'on the nod' and were not debated before they were brought into force. It is clear that in refusing children permission to go to funerals and having little discretion for head teachers, they are too restrictive.’

Mr Hemming also called for the Government to cut or axe Air Passenger Duty (APD) for those booking holidays during term-time to make trips more affordable.

Travel firm Travelzoo also called for APD to be reduced or scrapped during school holidays, claiming that taxes can add as much as £376 to outbound flights.

A recent survey by the travel firm found that 85 per cent of travel companies had been financially impacted since the restrictions on term-time holidays came into place.

Financial impact: Liberal Democrat MP John called for the Government to cut or axe APD during term-time to make trips more affordable

Richard Singer, European managing director at the company, said: 'A quarter of the travel companies we surveyed said that they might have to put prices up during the summer holidays to counteract the drop-off of families travelling during term time.

'We want to bring the industry together and are taking steps to form an alliance of operators and travel companies who want to work with the Government to ensure that the situation improves for parents and the industry alike.'

Meanwhile, ABTA - The Travel Association said school holidays should be staggered by region, as in other European countries, and said that 85 per cent of its members backed its proposal in a recent poll.

ABTA's chief executive Mark Tanzer said: ‘This poll shows that the industry is concerned about the issue and that it is committed to a constructive dialogue and to finding a workable solution to help alleviate some of the pressure around periods of extremely high demand that can result in higher prices.

‘Our discussions with Parliamentarians in recent weeks make clear that MPs understand the way pricing works, and appreciate that the travel industry is highly competitive; our hope therefore is that Monday’s debate in Parliament will focus on considering staggering school holiday dates as an option that merits further review and consideration.’