The steep rise in holiday prices in the summer was thrown into sharp focus recently when the government announced a clampdown on parents taking children on holiday during term time. ROB LUDGATE investigates

PARENTS were warned recently not to risk a £100 fine by taking children out of school during term-time without permission.

But the significantly higher prices charged for holidays taken during peak times means many will still be prepared to face the wrath of their school in order to have an affordable break.

For others it will mean summer holidays will simply not happen.

Mum of three Maureen Rice, of Maesglas Grove, Newport, said: "It's exploitation and it shouldn't be allowed. The government should do something."

And Clare Ward, of Friars Road, Newport, a mother of two boys, said: "It's heart- breaking when you eventually find the holiday you want, then look at the prices and see how much they shoot up at school holiday times."

She added: "We had a holiday to Spain last year, but the extra cost of peak season means we won't be able to afford one this year."

Holiday prices can shoot up by double or even triple the amount during the peak season, but according to the Association of British Travel Agents the price hikes are unavoidable.

Spokeswoman Frances Tuke said: "Unfortunately it's inevitable. Price is dictated by demand. It's simply a matter of market forces."

She added: "It's not that holiday prices are raised during peak season but that they're reduced at off-peak times. Prices in July and August are actually the real prices of the holidays."

The price differences tempt many to travel during school term-time, but Education Secretary Charles Clarke's recent announcement that parents could be fined £100 by their head teacher will leave many parents facing a difficult choice.

For some, though, the fine may not be enough. Alan Leach, of Hengoed, a father of two, said: "When you can save £500 on a holiday, a £100 fine is no deterrent."

In France the problem is alleviated by the fact that not all schools take holidays at the same time. The country is divided into three educational zones which have different term-times.

A new scheme in Britain may help similarly.

The Independent Commission on the Organisation of the School Term recommended last year that schools should switch to a six-term year by 2006. Some 150 local education authorities voted unanimously in favour of the project.

This would increase the number of opportunities for taking a holiday, spreading the demand and perhaps flattening prices.

James King, of the National Consumer Council, said: "Price regulation is imposed when there is evidence of market failure - a lack of competition or a monopoly allowing suppliers to fix excessive prices. For example, water prices are regulated by OFWAT, calls to mobile phone prices by OFCOM, and energy prices by OFGEM."

But he concluded: "We haven't heard anything to justify price regulation in this case.

"I'm afraid it just reflects demand and supply."

It seems that families will be left with a high price to pay for their summer holidays.

PRICES COMPARED

We compared off-peak and peak-time prices for the same two-week holiday packages for a family of four.

DESTINATION/HOLIDAY TYPE OFF-PEAK (June) PEAK (July August)

WALES

Newquay, Caravan £1068 £1,346

Carmarthen, self catered accom £668 £938

Tenby, half-board hotel £1,218 £1,474

SPAIN

Costa Dorada, ferry/caravan £1,000 £1,500

Costa del Sol flights, half-board hotel £1,515 £1,884

Costa del Sol, flights, self-catered accom £1,408 £2,190

FLORIDA

Orlando, Flights, self-catered accom £3,064 £4,750

Orlando, flights, half- board hotel £1,938 £2,840