Travel doesn't have to be taxing

28 February 2008

Anyone familiar with package holidays will probably recall booking excursions or activities organised by the tour operator.  Sometimes they are paid for before travelling and sometimes they are paid for locally at the holiday destination.  Usually they are optional but must be paid for.  The ASA recently published an adjudication, which confirmed that, if they are compulsory, advertisers must include the costs of excursions, activities or other adds-on in the holiday headline price.

The company advertised an Egyptian tour “from £149”.  But a footnote stated “Local payment on all trips: £90”.  The advertiser confirmed that the local payment was compulsory and the ASA concluded that, because the headline price did not include the cost of the local payment, the ad could mislead about the true cost of the tour.

Even if it must be paid in a different currency, a compulsory cost should be included in the headline price.  Advertisers should base their calculation on the exchange rate at the time the ad appears.  We understand that charges payable in the destination’s currency are usually fixed by tour operators but, if they are not, advertisers can include a footnote warning of potential fluctuations.

Of course, the adjudication applied to compulsory payments only.  If customers can choose whether to pay for add-ons, advertisers do not have to include the amount in the headline price.  Advertisers should, however, hold robust evidence to prove that such payments are optional.   Click here to read the adjudication.