We booked a holiday with Direct Holidays for £350 each (7 nights, half board) we thought it was a good price but not the cheapest we've ever had, so we didn't think there was a mistake with the pricing. The next evening we had a call from the company saying they are cancelling our holiday and refunding the money back to our card because the price was wrong and it's too low.
We're obviously very unhappy with this as they've surely entered into a contract with us by accepting the booking and taking payment. They then said that as we ticked the terms and conditions and there is a clause that states that the company can change the prices that they are allowed to do so. It just seems so unfair and where is the customer protection if once you've bought something the price can always be changed, is there any protection offered in the Sales of Goods and Services for example.
If it's there in the small print, there are within their rights - but you need to double-check. No shopkeeper is legally obliged to sell any time for the price he's advertising in the shop window (daft though this may sound), but there may be different rules applying to holidays, on-line transactions, etc., check your small print.
Direct Holidays Terms and Conditions do state that they can cancel Holidays for various and non specified reasons, However they also state that they will not cancel a holiday within 10 weeks of departure unless it is beyond their control which this situation isnt. When were you departing ?
It would depart next year. They've not said anything about paying the increased amount but to be honest I wouldn't want to as I could get another holiday for £350 elsewhere as I have before.