Sky-high Security Deposits on Holidays Deemed Unenforceable

This week, the Competition and Markets Authority warned travel companies that unreasonable holiday deposits and cancellation fees may be unenforceable, even if holidaymakers agree to the terms when booking

  • 38% of holidaymakers, representing 18.7 million people, say that travelling is their top priority when budgeting for 2019
  • 50% of those aged 18-34
  • 30% of Brits said that their savings were primarily for holidays, rather than any other spending like rainy day funds or home improvements
  • 9.1 million – 18% of Brits – would rather go on holiday with their friends than see them at home
  • Increasing to 31% of those aged 18-34
  • 17 million holidaymakers – 34% – will shop around for the cheapest provider on comparison sites online
  • Millennials are savvier with their money, with more than half – 51% – using their online skills to find the cheapest provider

When it comes to holidays, there are a number of traps travellers can fall into, potentially costing them hundreds more pounds. Rob Stross, CMO of WeSwap, reveals some of the best ways to reduce costs while travelling: “The best thing a holidaymaker can do when booking a holiday is ask questions. If a charge or deposit seems unreasonable, there is a chance it is actually unreasonable. The recent CMA warnings are a positive announcement, proving that travellers aren’t at the mercy of unfair non-refundable deposits and that providers should always be working in the interest of their customers. This doesn’t stop with deposits for accommodation, as there are a number of steps you can take to reduce the cost of flights, travel money and more. From using a private browser to abandoning your basket to see if a provider will offer you a voucher for a cheaper cost, consumers can be savvy with the spending.

“Being aware of hidden costs when it comes to your travel money is also important. With prepaid travel cards and debit cards, be aware that additional charges such as withdrawal fees and transaction fees may increase the cost of your holiday. When evaluating which providers are offering the most foreign currency for your pounds, make sure you aren’t paying a commission fee that is over 2-3%.”