Holiday Pricing

Annette Brooke Excerpts

Monday 24th February 2014 Westminster Hall

[Natascha Engel]

Absolutely, and the case is ongoing. I was citing it as an example of using a massive hammer to crack a nut. Everything is with good intentions. We all want the best education for our children. We all know that the less time a child spends at school, the worse its outcomes will be, and there are lots of different reasons for that. There are children from chaotic families and children who truant, but we are talking about looking at an individual child and the family’s circumstances and seeing whether it would be possible, not to have a week a year taken out of school time, but to have a week occasionally to make sure that that family can spend some quality time together. I am so glad that we are having this debate, and I am looking forward to hearing about other individual cases from constituencies, because they will highlight the fact that we do need to revisit the matter.

Obviously, we cannot force holiday companies not to raise their prices during school holiday times, but we do need to have a far more sensible and pragmatic approach. We need to give schools greater discretion to allow families to have holidays together.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

I agree with many of the points the hon. Lady is making, but I have a concern about putting the onus on to head teachers without very good guidelines. Head teachers would find it difficult with parent against parent, and there would be inconsistencies across areas and across the country, so I think we need to dig into the criteria and guidelines that are issued.

[Natascha Engel]

That is an excellent point. I know the hon. Lady has a background in education, and she is absolutely right. All I am asking for is that we allow greater discretion. At the moment, there is not enough discretion, and that is why the issues are being raised with us as constituency MPs.

--- Later in debate ---

[Damian Hinds]

Yes, it is my fault. I worked mostly in the hotel business, but the same principle applies to airlines and most of the travel business’s wide range of products—basically anything with high fixed-cost assets, a perishable product and fixed or semi-fixed capacity. Hotels are also suppliers to holiday companies. Package operators buy in capacity from airlines, hotels, bus companies and so on. It is also worth bearing in mind that there is an international market, especially in foreign travel. Packagers are to some extent price takers. No one in this country decides the market rate of a hotel room in Spain in the high season. Even if we believed that British companies set the prices for holidays, no one would suggest that Spanish hoteliers are within the control of Her Majesty’s Government. Resort-based travel is international in nature. People have already mentioned the timing of German and French holidays, which are already factored into the price. If people from different countries are going to a resort, the demand is an amalgam of all the incoming traffic.

I come here as a sinner, but I have not come here to confess. I do not anticipate a popularity boost from my appearance in Westminster Hall this afternoon, but the simple fact is that to a large extent we are talking about the laws of economics. There is no single year-round market clearing price in holiday resorts.

[Annette Brooke]

I want to draw on the hon. Gentleman’s expertise. I accept that there is supply and demand and that, if we attempt to interfere too much, there will be touting and so on, but does his analysis include the reasons for the steep rises on particular days, which seem to coincide with school holidays?