A lot depends on where you go – in some places, prices (particularly for hotels) are a lot lower in the school holidays. This is especially the case for business-minded cities (Oslo is a stand-out example, but it applies to the likes of Zurich etc). The peak season for hotels there is outside of school holidays when a lot of business travellers go there.

During school holidays, there aren’t nearly as many conferences or business travellers. The reason? The businessmen are away with their families on holiday. So the hotels drop the rates (at weekends especially).

It’s simple supply and demand – most packaged family holidays are more expensive during the summer because most people want to travel then. But look into destinations where summer is NOT the peak time, and there are bargains to be had.

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I’ve not got kids so perhaps I’m biased.

Holiday companies know that they can sell plenty of holidays at premium pices during the school holiday period. They also know that many people choose to take holidays outside these periods as prices tend to be lower.

If holiday companies decrease their prices during the school holdays then prices outside these time will doubtless increase. I do not think that’s fair.

When you have children you’re well aware of the additional costs of living; it’s not fair to tax people who have chosen not to have children.

Supply and demand exists in just about every consumer market. Why make an exception for holidays?

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Darren, I will give the same answer as last time

Holiday A costs £750

But in low season all people will pay is £500
In mid season will pay £750
Then in high season £1000

So over all the tour operators get 750.00 so what the holiday costs. If you can find a way of getting people to travel and pay 750.00 in low season then the price during school holidays will be 750…. But how to do this is the question.

As to the other comment about tour operators making big profits from customers, Thomas Cook had a great year and they manage to make almost £4 (and no I have not missed zero’s) per customer.

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Hi Darren
Surely any business has to price its product according the supply of product and the demand for that product.
Yes holidays can be more expensive during school holidays, but that is because there are more people travelling and hence more demand.
Are you against people making a profit, or just profiteering?

Other companies price according to demand/supply. Flights later in the evening or overnight can be cheaper because they are more inconvenient, conversely flights early on a Monday morning from say Edinburgh to London, can be the most expensive as business demand is highest. Is it right that these people have to pay a higher price? They may have no choice about when they can travel.

Are you looking to the EU to regulate pricing during certain times of the year ?

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I am married to a teacher with no kids and we are penalised too. We have to take holidays during peak season, and have to pay the peak prices.

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Maybe it’s because I don’t have children (yet) but I find it hard to get worked up about this issue. It is simple supply and demand.

If you want prices kept artificially low in high season then logically you should also object to deep discounting in low season. After all, it’s the principle of the matter! It’s discriminating against families because they can’t get these discounts. Never mind that the discounts are the only way the hotelier will fill the rooms.

What’s wrong with a family camping trip or going to see your relatives? Travel to exotic places isn’t a right.

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It is our choice to have children but as Darren has written our backs are well and truely backed up against the wall. We have no choice but to pay the price increase during the school holidays.

Caitlin is right about changing how you go on holiday, i.e. camping. We did that this year, and really enjoyed it. Without families going abroad though travel agents would not exist

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It’s a good post, Darren – but I’m with the balance of opinion so far expressed. The real issue is not people being exploited by the travel industry, it’s people not having access to enough quality information about where to go on holiday.

In your example, Florida is expensive in school holidays because EVERYBODY thinks Florida’s great, the kids will love it and there are some really good deals. But like David Whitley said in an earlier comment, there are TONS of great places in this country and the rest of the world that the kids will love – and where there genuinely are good deals available.

It’s about the great British public getting canny, sticking two fingers up to school-holiday price hikes, doing a bit of thinking and a bit of searching – and booking somewhere a bit different for their holidays this year. And next year. And the year after. There’s a world out there.

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Well, Darren,

On this side of the Atlantic you would have been pilloried, tarred and feathered for being a socialist by now.

Such are the vices of deregulation. The establishment–especially airlines–are free to introduce ridiculous price fluctuations that benefit them.

There is a very strong argument to be made for going back to regulated airlines. Chief among them is making travel accessible to those living in rural and far away places–a significant minority here in the U.S. Given the current climate of “capitalism” fever, however, I doubt anyone will care about quality of life and justice issues.

This is jungle law, and you guys are now getting a good taste of it in the UK, too.

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It is mainly the airline’s that hike the prices up at ‘peak’ times. Feb and Oct half term, Easter, Summer and Christmas. Even flights that go over bank holiday periods.

Most hotels, accommodation, will have a high and low season rate, but they do not play at roller coaster prices throughout the year like the airlines. Airlines will say it is supply and demand and that peak high prices cover the times they fly half full during the rest of the year on off peak.

As a general rule of thumb, I find booking about 9-6 months in advance gives you a decent deal. Or for a late deal about 6-3 weeks. At Peak times, if you leave booking too late, it will mean you’ll be camping in Devon instead as it will be too expensive or nothing left. A family camping trip may be nicer all round.

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[...] School holidays. Darren Cronian at Travel Rants says the travel industry is taking advantage of families with big price hikes in school holidays. [...]

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Not so sure I agree with you on this one–supply and demand mean that the travel industry needs to charge more when people want to travel in order to stay in business and be open during less-busy times.

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When demand is higher, so are prices. There are only so many rooms and flights available. If they artificially kept prices low, it’d basically become a lottery as to who gets to go on holiday, which is a far less “fair” rationing system than price.

The profits made in many holiday places during summer enable them to keep a bare bones service running through the winter and to survive year to year. Most of their money is made in summer. This is particularly true round my way on the Lincolnshire coast. No-one comes here out of summer!

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“Surely the government or European Union should be doing something about this.”

I would suggest that the last thing we need is to have governments intervening, which would surely end up in higher prices for all. Sure its frustrating for some though.

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[...] a recent post by Darren Cronian where he says it is Time to take a stand against school holiday price hikes. I couldn’t agree more, as this is an issue that’s annoyed me for years. He adds: come [...]

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I’m afraid I’m with everyone else on this one, it’s just supply and demand and the last thing anyone needs is the EU meddling with it.

Why not direct your ire at the government? They could make life much easier by having a much more sensible policy regarding school holidays. In France the country is divided into three zones and at February one zone gets the first two weeks the next zone the next two weeks, etc.

If they did this in the UK it would lessen demand and result in reduced prices. The government like to be very strict on parents who take kids out during school time, but they do absolutely nothing to help matters.

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Darren did you see that US domestic airlines are introducing a US$10 per passenger surcharge at peak weekend / bank holiday departures? This is an additional flat surcharge to already high flight prices at these travel times.

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The % families probably depends on the location and type of accommodation. My guess is that with the level of competition on the travel industry there are very few who can afford to overcharge. Maybe the issue is just that we are all so used to affordable travel in the current age (how many families could even consider transatlantic holidays 30 years ago?) we become frustrated when certain options are less affordable?

Having said that, right now I’m very annoyed about not being able to find ski accommodation for 2 nights over new year. I’d fully support legislating against that. – particularly since somebody recently told me that in many ski resorts up to 70% of bed space is now taken by privately held apartments whose owners visit 2-3 times per season. The rest of the time they remain empty, damaging local businesses through lack of trade and screwing up my holiday plans. Many of these apartments have been purchased following payment of large bonuses. Sorry – went off topic there on my own rant.

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Nick mentions trying to find people to pay £750 in low season for a holiday. If the tour operators said that the cost of a specific holiday was £750 whenever you went then people would pay it if they wanted a holiday. Its like everything, when the price goes we all moan but we still pay the price. The only way to stop this inequality is for people with children to stop booking holidays during school breaks and nobody shall do that.

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@John
What you’re suggesting is a cartel and basically price-fixing which is illegal. As you say, it’s the market that dictates the prices, not the travel companies. If nobody paid higher prices in peak periods the prices would come down.

@ Darren
You’re way off the mark with your comments. There is no conspiracy against single people or families. Nobody is trying to “take advantage” of anybody. If they were they would soon be found out.

Travel companies need to make money to survive. That’s all it is. That means they have to charge single people a bit more because they would get more if a couple were in the room. It means they have to charge families more because that’s when demand is highest.

I can take it that you don’t like the way capitalism works but to suggest that within travel there is some bizarre machination targeting certain groups of people is bizarre and just plain wrong.

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Further to the question of varying prices – how do people feel about having to pay for a holiday twelve weeks before they actually have it. I have heard that Thomas Cooke are now saying twenty weeks but I cannot confirm that. What other product would you be willing to pay for in full, 3 months before you actually get it. On top of all the other profit operators make how do they make on having our money in their accounts months before it is actually required.

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@ John – The problem is if you had a choice of paying 750 for 6 hours of sun, average temp of 19 and 3 days of rain……. or 750 for 9 hours of sun, average temp of 27 and maybe if very unlucky half a day of rain…which would you choose, the problem is most people choose the 2nd option and that is also what creates supply and demand, mix that with school holidays and bang 1000… Way it goes, if you want something and there is not enough to go round then you pay more.

As to why companies want your money, this is because it is how they make there money (profit), both from interest and risk limitation. You take that away and prices will climb, I notice you not complained about likes of Ryanair asking for money 9 months in advance? The Travel Industry has been dissected over and over by other bodies and governments and each time they come out on our side, my favorite quote is “If it was my business I would not even get up in the morning as it is not worth it”, says it all I think!

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@ Mark “damaging local businesses through lack of trade and screwing up my holiday plans.”, yes but for only 3 weekends a year and stats prove they will spend more in the local economy than short stay visitors. Plus most private apartments are let out; very few are just held on to for 3 weeks of holidays a year, so if you want a week apartment you should find one. But even so most will be let, or most likely occupied as it is when the owners wish to go as well.

There is of course a simple answer to this, stretch the school holidays like they do in other countries. if the schools summer breaks started in June and ran though to September and half terms where spread over 3 weeks instead of one, or have in some areas 4 weeks for christmas and 4 weeks summer, prices would fall because when there is currently empty (loss making seats) there would be less mean less money to recoup = lower prices. But as normal not an industry problem, but a goverment hold up, trust me we have told them this.

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Hi Darren,

I think that the explanation “supply and demand” is used a bit lightly here. It is more complicated and at the same time a bit more discriminating. So I tend to understand your gut feeling of “there is dishonesty in the air”.

A mainstrean tour operator (package holidays) has a particular pricing model. They make money in school holidays and ALMOST ONLY in school holidays. This means that their clients , travelling in these periods, subsidize all the others. Especially in the case of full risk flying and full risk hotel contracts (100% committed) the holidays are priced at a loss in low season, at a moderate loss in mid season and at a fat profit in high season.

The question is not whether this is a honest strategy or not. That is ethics, and personal opinion. The strategic question is: as the system is depending on there being a structural over demand in high season, what happens if the high season does not generate the expected volume? This can be incidental (the present economical crisis) but this can also become structural (changing demographics).

By the way: this is the reason why in years like this one, tour operators go bust in July/August. They have burned their cash in low season, and high season does not compensate enough. They wait for the last minute season, and if this does not materialize, they have to dump their stock and … bang.

I hope this gives some extra perspective
Jan

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People seem to think travel companies are charities, they are not. In this day and age most travel companies are making as little as £4 per passenger and often lose money during the less busy travel periods. It’s quite simple really, during school holidays, firstly the hotel prices go up, the air travel goes up, therefore the cost to the tour operator goes up, it is definately not a case of travel companies charging unfair prices as many of them don’t even increase their margins during the peak times as they are still operating in a competitive market. Go off peak, the kids will probably learn more anyway!

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Hi

I’m a travel agent based in Tenerife.( Aecan)

I do understand prices are increased in certain dates to compensate low season. And I do understand families can’t afford so high prices, so my recommendation would be to book , at least tickets in advance. I’m already getting bookings for summer 2010, that gives time to people to look for accomodation or also get Eearly booking discounts, also the ones that get packages get better rates.

On the other hand I could also say sometimes we get mails of families of 6-8 people that want to spend 10GBP per person per day in all inclusive resorts, 4* or more, sea view and walking distance to the beach, of course if there’s a chance of getting private pool, it would be so appreciated, so, also some families try to take advantage

As I said, my recommendation is to book , at least flights in advance.

Regards
Arantxa

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Whilst I understand the “supply and demand” principles, I do think some companies take the biscuit – Centreparcs for instance have £1200 difference between 4 night breaks in exactly the same accomodation in April 2010 – because of the easter holidays obviously, but also their weekend prices remain very high all year, regardless of school holiday dates, bank holidays, special events etc so this affects you whether you have children or not ( although it is more of a family place). I have to admit to giggling at the thought of a tax on childless people, who mostly are free to travel where they want, when they want with no fear of being fined by the government.

A friend in the travel industry claims there are only two weeks in August which are truly high demand in Europe because pretty much everyone in every country wants to be away, the rest of the time in her opinion it is a bit of a smokescreen.

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We certainly can do nothing about the supply and demand principles, but the solution to this that I see is very simple. What causes the high prices during school holidays is the stupid goverment policy against taking family holidays during school year. They do not seem to realise how many families would not go for a holiday at all because of high prices leaving children with no other option than TV or hanging out with local gangs.And they dare to claim the policy is in children`s interest.
If I could change the rule I would do quite opposite- I would allow up to two weeks holiday taken up in families descretion. And holiday prices would stay at the same level for most of the year. But, I guess, I am insuficiently stupid to be the ruler
Slightly of the topic, though comments on this would be appreciated

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at the school where my daughter goes they are allowed 2 weeks off a year to go on holidays so i take her out of school every year.the tour operators are just ripping families off. they give crap about supply and demand ,if people had the choice they wouldn’t go in school holidays.

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Even if you pay the fine you’ll still be in pocket by a few hundred pounds. If the holiday were only £200 dearer in school holidays that wouldn’t be so bad!

We have a different problem anyway, I work termtime only and we don’t really want to take the kids out of school BUT my husband’s work only allows one person per team to take holiday at the same time. So we’re really struggling to fit in any sort of holiday around what we can get, (February so too cold to camp etc.). To make matters worse holiday flight dates often don’t seem to fit in with school holiday dates, despite charging more!

Maybe one solution to the usual problem would be to stagger school holiday dates from region to region? Perhaps split the summer holidays into two shorter holidays? Maybe holidays would cost slightly less with slightly less demand on each period. Also if the main summer holiday were not the month of August we’d not have to compete with the whole of Europe for spaces. Of course there’s the exam dates to consider too……..

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