Rival airlines are hiking prices by as much as 400% after Thomas Cook collapsed
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Sinéad Baker,Sinéad Baker,Sinéad Baker
Sep 24, 2019, 15:41 IST
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Airfare prices for routes previously served by travel company Thomas Cook are surging in the wake of its collapse.
Travellers found tickets with rival airlines like Jet2, British Airways, Ryanair, and TUI to have gone up as much as 400% since Thomas Cook abruptly stopped operations on Monday.
The collapse left 600,000 people stranded around the world, and many with now-worthless bookings for future flights.
Airlines responded by saying that their prices are determined by market forces. Industry analysts say that increases are the inevitable consequence of a provider collapsing.
Travelers booking flights since the company's collapse on Monday say that prices have soared. Thomas Cook ran dozens of flights a day, and its collapse left 600,000 stranded around the world.
Customers with future bookings have found their trips cancelled, and must rebook with rival operators if they still want to travel.
One traveler said on Monday that the cost of a flight with British budget airline Jet2 had almost doubled within an hour of Thomas Cook's collapse:
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Another said that a flight had tripped, from £47 to £145:
A spokeswoman for Jet2.com said told Sky News: "Our pricing, as is common practice in the travel industry, is based on the principle of supply and demand."
"As supply reduces, an inevitable consequence is that prices increase. However, we are looking at adding more supply (flights and seats) to help customers at this time."
Angela Mills, a vacationer, told the BBC that a flight from Glasgow, Scotland to Rhodes, Greece, was £1,000 on Tuesday, up from £280 on Sunday. She did not say which airlines she was looking at.
A spokesperson for British Airways told Sky News that the flight prices are based on supply and demand, and denied targeting Thomas Cook routes specifically.
The newspaper also reported on a TUI airline return flight from Scotland to the Canary Islands that increased from £320 to £620, and a Ryanair flight from England to Spain that increased from £113 to £226. Business Insider has contacted Ryanair and TUI about increased flight prices.
Experts say the price increases are inevitable
John Strickland, an airline analyst at JLS Consulting, told the BBC: "People aren't sitting there rubbing their hands with glee. If sales come in rapidly on popular routes then prices go up."
He said: "When a particular route ceases to operate, prices do indeed increase substantially, but this generally occurs over a matter of weeks and months. I expect it will be similar in this case as the additional demand will increase prices on other carriers."
Lisa Tyndall, a spokeswoman for flight comparison website Skyscanner, told the newspaper: "We typically see prices increase for key routes when an airline ceases trading, before reverting back again soon after."
Most people now looking to book new flights are those who have had their future trips ruined.
Those who booked package holidays through Thomas Cook should eventually get a refund, but this is not the case for those who only booked flights through the company.
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The UK government is flying home the 15o,ooo British people now stuck abroad.
Thomas Cook's biggest routes were places like Greece, Italy, Turkey, Spain, and the Caribbean. It also offers package holidays in the winter, which could mean that winter travel prices are also affected.
Paid for two fights to Menorca with Barclaycard and they've told me to contact Thomas Cook. Tried another flight with Jet2 and £47 yesterday £145 today. How are they allowed to do this?
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