Holidaymakers warned to be wary of tempting getaways with low deposits as they could be forced to pay thousands if they cancel the trip. Which? reveals

Holidaymakers should be wary of tempting low deposit holidays sold by travel agents. Which? warns.

This is because in some cases travel companies are failing to make it clear enough that holidaymakers could be forced to pay up to thousands of pounds if they have to cancel after booking their trip, new research from the consumer champion has found.

Which? explains that these ‘low-deposit’ schemes involve paying an initial amount upfront and are often displayed alongside multiple payment options, potentially leading customers to believe that the initial deposit amount is the full deposit.

But in many cases this is just an initial installment for a larger deposit, and if not clearly stated, low deposits can leave customers unexpectedly short of money.

One customer claims she will ‘never book with Tui again’ after being blindsided by the company’s terms and conditions when she tried to cancel her family holiday to Bodrum, Turkey. She thought she would only lose the ‘low deposit’ of £150 she had paid to secure the trip, but in reality she had to pay an extra £650 as the full deposit was £800 – something that she had not realized when booking the trip. holidays.

Michelle Simons from Northampton tells Which? that she had not been abroad for 13 years and decided to go to a Tui store for specialist advice.

While she opted for a low deposit trip, she says the travel agent handed her a “laminated piece of card with terms and conditions,” but she says it was not verbally explained to her in the store that she would have to pay a larger amount if she chose to cancel later.

Which? reveals that an email confirmation was sent to Ms Simons describing later scheduled installments as ‘payments’ – which Ms Simons says she thought were for the remaining balance of the trip, rather than a non-refundable deposit .

After considering her holiday choice, Ms Simons decided to cancel the original holiday, believing she would only have to pay the low deposit of £150 and book an alternative trip.

‘Then they told me I had to pay this full £800 deposit – so another £650 on top of the £150 I paid to cancel… I had no reason to think the deposit I had paid was not the full deposit,” she says Which?

Ms Simons explains to Which? that the store manager warned that she could be taken to court if she did not pay the remainder of the deposit. Unwilling to lose the money, she went ahead with the original vacation, Which? say.

Which? Researchers discovered that Tui’s online booking system offers both a ‘low deposit’ and a ‘no deposit’ payment option.

The watchdog says the fine print shows customers will have to pay a ‘full deposit’ fee if they want to cancel their ‘low-deposit’ trip. Those who opted for a no-deposit payment would also have to pay a non-refundable deposit, as it turns out.

The consumer champion also raised concerns about low deposit schemes offered by other travel agents, such as Loveholidays.

When you view a week’s holiday package for £3,490 for two people with Loveholidays to the Oberoi Beach Resort in the UAE for August 2024, Which? found that a ‘low deposit’ of £29 per person was offered.

If travelers select the low deposit option, Loveholidays will outline the future costs and call them ‘installments’. Which? say. It continues: ‘It does not clearly indicate that the first two installments form the remainder of a larger deposit, meaning a customer could wrongly assume they would only lose £58 if they wanted to cancel. In fact, they would have to pay a further £1,439 to cancel this trip; the remaining deposit is due.”

Although Loveholidays contains a link to the terms and conditions under the heading ‘I understand and agree to them’, Which? says the company could be more explicit in highlighting the obligations in the main text.

Which? adds that the company could clearly emphasize that the two ‘low deposit’ payments contribute towards a non-refundable deposit, rather than describing them as ‘installments’.

Moreover: which one? says tour operator On The Beach charges £30 per person to secure a booking at HSM Canarios Hotel, Mallorca. And while it has stated cancellation fees and linked them to the terms and conditions, they believe their low deposit terms could be made clearer up front.

Jet2’s ‘low deposit’, on the other hand, refers to the full deposit payable. Which? reveals. At £60 per person this initial payment is higher than some other companies, but the initial payment of £60 per person is everything a holidaymaker would lose if they choose to cancel their trip, at no extra cost, the watchdog notes .

Meanwhile, holiday rental Cottages.com offers a low deposit in a similar way to Tui – with the initial low deposit only part of a larger deposit. However, this is made much clearer from the start, with a pop-up message that appears once you select the low deposit option, showing exactly what amount you will have to pay if you decide to cancel – and explaining that this figure is the difference between the ‘low’ and ‘standard’ deposit amounts, which one? reveals.

Commenting on the findings, Naomi Leach, deputy editor of Which? Travel says: ‘As the cost of living crisis continues to stretch household budgets to the limit, low or no deposit holiday schemes can be an attractive option, allowing consumers to spread the cost of their holiday over a longer payment term.

‘However, we have found that many of these schemes can be confusing for holidaymakers, with cancellation charges and deposits sometimes hidden within the terms and conditions. If you are considering a booking with a low deposit, always take the time to check the terms carefully so you understand exactly what you will be liable for if you decide to cancel.’

Although Tui did not comment on Michelle Simon’s customer experience, a spokesperson told the watchdog: ‘We welcome this feedback from our customers and aim to make booking a Tui holiday as easy as possible. We will look at how we communicate our low deposit offer during the online booking process, with our customers telling us they like our low or no deposit offers and the ability to spread the cost of their holiday via direct debit. ‘

Which? says On The Beach did not respond to a request for comment.

A spokesperson for Loveholidays said: ‘Our low deposit system helps our customers pay for their holiday in installments before departure, rather than paying all in one go when booking, which has become an increasingly popular choice amid the costs crisis of livelihood.

‘We provide customers with clear and accurate information about how all our leading payment options work, with this information readily available on our website and during the booking process.

‘We always have our customers’ best interests at heart, so we are committed to taking this feedback from Which? in the context of further improving the booking process.’

Jet2holidays says: ‘Customers who book with Jet2holidays can be assured that they will pay the full deposit when they book with us.

‘As which? Recommended provider, Jet2holidays will never introduce additional deposits, and we are happy with that. Which? has emphasized that our low deposit covers the full deposit payable. We make the terms of our low deposit program very clear and that is why it is extremely popular with customers. This customer-oriented approach is one of the many reasons why holidaymakers choose us time and time again.’