Parents face fines over term-time holidays

Liberal Democrat spokesman Malcolm Bruce has asked the Office of Fair Trading to investigate what he calls a "feeding frenzy" by holiday firms.

He says parents could be cross-subsidising other holiday-makers by paying top rates for peak-time breaks.

His call came after the government announced parents could face �100 fines for taking children out of school for holidays in term-time.

The UK travel industry insists the country's holiday market is among the cheapest in the world and that prices are fair.

Malcolm Bruce MP, who is the Liberal Democrat's DTI spokesman, says holiday prices can rise by 100% during school holidays.

'Families exploited'

A survey for the Observer found holiday prices rose by between 20% and 100% during peak-holiday periods.

"The relatively short breaks, combined with high demand, are creating a feeding frenzy for holiday companies," said Malcolm Bruce.

The market is being distorted, he argues, because school holidays are set through public policy, and parents cannot pick and choose holiday dates as freely as other groups.

"It appears that families are being exploited and the extra revenue being shared with travellers who have more flexible options. In other words there appears to be a cross subsidy.

"The demand at half term is generated as a result of government or local government policy and is therefore not determined by free market forces."

'Competitive market'

A spokesman for ABTA, the Association of British Travel Agents, said the UK's package holiday market had been investigated in 1997 by the Monopolies and Mergers Commission and had been found to be competitive, offering good value for money.

"The UK holiday market is amongst the cheapest in the world and it's also a fiercely competitive market," the spokesman said.

"Tour operators make a narrow profit margin. Our market is like any other - when demand rises, so inevitably will prices."