Package Example 1 - Mr Smith
Mr Smith and his fiance were looking forward to their two week holiday in Cuba when a change in their domestic circumstances meant they could no longer travel.
It was 12 days before they were due to depart and so they would lose 90% of the booking cost if they cancelled. Mr Smith, who had booked the holiday, decided to exercise his right to transfer the booking to someone else and listed the details on an online auction site for 3 days to see if anyone else fancied the holiday instead.
- 2 adults
- Manchester to Cuba
- 14 nights, studio apartment
- 4* All Inclusive
- Thomas Cook
- Booking cost: £1450
-
Name change fee £40 per person
The auction attracted 10 bids. From a starting price of £750 the auction closed with a winning bid of £950.
Mr Smith then had a few fees to pay; the listing fee, and commission to the auction site as well as payment transaction fees, about £60.
He also had to change the passenger names to the new buyers at a further cost of £80 (2 x £40 name change fee)
Cancelling the booking would have cost Mr Smith £1305 so he would have received £145 refund from Thomas Cook.
Mr Smith's Saving = £950 - £60 - £80 -£145 = £665
By auctioning his holiday instead of cancelling it, Mr Smith was £665 better off.
Not only that but the new buyers bought a fabulous luxury holiday for £500 less than Thomas Cook sold it for. That's almost a 35% discount!
£475 per person for 14 nights, 4* All Inclusive in Cuba.