The price of the plane ticket can not always increase

It could be a math exercise in a vacation notebook: knowing that the cost of kerosene in the price of a plane ticket varies from 20% for classic companies to 35% for low cost companies, at what increase could you face if the price of kerosene increases by 10%? By 20%? By 30%?

Unfortunately, in one sentence, the lawyer from the European Consumer Center in Luxembourg “ruins” this perspective. “The price of a dry flight cannot vary,” explains Jean-Loup Stradella. As a result, it is up to the airlines to organize themselves upstream.

Last year, Air France-KLM was hedged on 82% of its fuel, which allowed it to have it at 619 euros per ton against 676 euros at the updated price, resulting in a saving of 300 million euros. euros. If the companies are not equal in the face of the situation, it is because their business model cannot “support” having cash blocked in this item, without knowing if they will fill their planes or even if they will fly, and in Covid-19 period, it is not an easy task.

A variation of up to 20 days

But what applies to a single flight does not apply to a package tour. “When you book with services for the same trip, flight, accommodation, catering, or even other activities, the price of the trip can vary up to 20 days before your departure”, explains the CEC lawyer Luxemburg. “If the variation is more than 8%, you can cancel free of charge… but you will be 20 days away from your vacation and you will have nothing in your hands.”

8% of a 3,000 euro package represents an additional cost of 240 euros, or even 400 euros for a 5,000 euro package.

If the increase is less than 8% of the starting total, the traveler can also cancel, but it is up to him to support the cancellation financially, which varies depending on when the traveler cancels. A few days before departure, the traveler can lose his money.

Rising tickets and insurance

And less than 20 days before departure, the tour operator can no longer touch the price.
In France, the deadline is even extended to 30 days
.

Many travel blogs mention the strategies of tourism specialists to hedge or circumvent devices such as increasing the price of the package from the start to hope to compensate for the announced increase in the cost of fuel, for example.
Like Tui, which has increased the price of shorter flights, to Spain, Turkey and Morocco, by an average of 20 euros; for longer flights, to the Caribbean or Mexico, for example, the amount increases up to 350 euros for a family with two children
.

Since January, Tui has launched an insurance product, the Fuel protection program, which makes it possible not to bear any additional cost against… 150 euros. Like any insurance contract, it is prudent to look at the list of destinations that are not covered by this insurance: Athens, Colombo, Denpasar, Dubai, Lisbon, Male, Malta, Mauritius, Muscat, Phuket and Zanzibar this summer, and Malé, Phuket, Mauritius, Colombo, Denpasar, Muscat and Dubai this winter,
according to Tui’s conditions
.

A good opportunity to work on your mental arithmetic without waiting for the holiday notebook.

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The price of the plane ticket can not always increase