Which? warns of hidden terms in ‘low deposit’ holidays

Consumer champion Which? is warning holidaymakers of the perils of committing to a ‘low deposit’ holiday.

Which? says some enticing ‘low deposit’ holidays are not exactly what they seem.

When holidaymakers book a package holiday or cottage rental, and opt to pay a ‘low deposit’ they often assume this is the only amount they have committed to paying.

Which? says some firms don’t make it clear that customers could be forced to pay up to thousands to cancel the booking.

In many cases this may just be a first instalment towards a larger deposit.

Which? is concerned that some firms are not clearly detailing this at the point of sale, leaving customers unexpectedly out of pocket if they need to cancel their plans.

Which? researchers tested an online booking with TUI, finding that in addition to its ‘low deposit’ offer, TUI customers can also select a ‘no deposit’ deal.

On the payment page the small print sets out that customers are liable for a ‘full’ deposit amount should they cancel their ‘low deposit’ trip.

Also, those on a ‘no deposit’ holiday would also be liable to pay a non-refundable deposit.

Which? is calling for TUI and other travel firms to set their terms more prominently, earlier in the booking process.

Which? also has concerns about other firms’ low deposit schemes, which appear even more confusing.

It highlighted loveholidays and On The Beach for not being transparent enough about required payments due when a customer has to cancel.

Which? contrasted this with the policies of Jet2 and Cottages.com.

Jet2 has a one-time low deposit and no further obligations if cancelled, while Cottages.com makes it much clearer from the outset what a customer must pay to cancel.

Naomi Leach, Deputy Editor of Which? Travel, said: “As the cost of living crisis continues, ‘low’ and ‘no’ deposit holiday schemes can be an enticing option.”

“However, we have found many of these schemes can be confusing for holidaymakers, with cancellation fees and ‘top up’ deposit payments sometimes buried in the terms and conditions.”

“If you’re considering a low deposit booking, always take the time to check the terms carefully.”

In response, a loveholidays spokesperson said: “Our low deposit scheme helps our customers pay for their holidays in instalments before departure, as opposed to all at once upon booking. “

“We provide customers with clear and accurate information and is readily available on our website and throughout the booking process. “

“We always have our customers best interests at heart, so we are committed to reviewing this feedback from Which?.”