Travel firms reproached over price fixes

Date: 25/04/02

By Laurence Frost

THE EUROPEAN Commission is to examine possible anti-competitive agreements between travel companies, following an MEP's complaint that some holidaymakers are being forced to pay higher prices than others for the same breaks.

Socialist Michael Cashman singled out space-age resort operator Center Parcs as one of a number of firms which he said were charging different rates to customers from different EU countries.

The problem came to the MEP's attention after British customers were turned away from the company's Belgian reservation service and told to book their stay at a Dutch resort through a UK agent - for around €245 more per person.

'We're not talking chicken-feed,' said Cashman.

'People save up a lot of money to go on holiday once or twice a year, and they shouldn't be ripped off.'

Responding to Cashman's concerns, EU competition chief Mario Monti said officials would scrutinise any restrictive agreements between holiday companies and their booking agents.

'This practice would mean consumers could not choose to make their bookings in the member state where the terms were most advantageous,' the commissioner said. 'The directorate-general for competition will proceed with an enquiry to check these various elements.'

Cashman is meanwhile preparing a dossier on other travel operators that charge different rates to different EU nationals, including Turkish Airlines and Eurostar - whose tickets, he says, sell for up to 20 more in Britain than in Belgium.

He said he was in contact with fellow MEPs from Denmark and Sweden - the two other countries that have so far not adopted the single currency - to monitor possible discrimination against their consumers.

'If one or two major companies are operating in this way in what's supposed to be a single market, it's probably indicative that we will find other evidence of this practice,' he said.

'Consumers are being discriminated against because they are outside of the eurozone.'

The European Commission is to examine possible anti-competitive agreements between travel companies, following an MEP's complaint that some holidaymakers are being forced to pay higher prices than others for the same breaks.