Hotel booking sites in the UK have been censured by the Competition & Markets Authority following a serious of concerns around pressure selling, misleading discount claims and hidden charges.
The effect that commission has on how hotels are ordered on sites was also a concern for the enforcement body.
Expedia, Booking.com, Agoda, Hotels.com, ebookers and trivago are among the sites hit by the action.
The Competition & Markets Authority acted last year because it was concerned that practices such as giving a false impression of a room’s popularity or not displaying the full cost of a room upfront could mislead people, stop them finding the best deal and potentially break consumer protection law.
All companies under investigation by the organisation have co-operated with its work and voluntarily agreed to the following:
- Search results: Making it clearer how hotels are ranked after a customer has entered their search requirements, for example telling people when search results have been affected by the amount of commission a hotel pays the site.
- Pressure selling: Not giving a false impression of the availability or popularity of a hotel or rushing customers into making a booking decision based on incomplete information. For example, when highlighting that other customers are looking at the same hotel as you, making it clear they may be searching for different dates. The CMA also saw examples of some sites strategically placing sold out hotels within search results to put pressure on people to book more quickly. Sites have now committed not to do this.
- Discount claims: Being clearer about discounts and only promoting deals that are actually available at that time. Examples of misleading discount claims may include comparisons with a higher price that was not relevant to the customer’s search criteria. For example, some sites were comparing a higher weekend room rate with a weekday rate or comparing the price of a luxury suite with a standard room.
- Hidden charges: Displaying all compulsory charges such as taxes, booking or resort fees in the headline price. Sites can still break that price down, but the total amount the customer has to pay should always be shown upfront.
Competition & Markets Authority chairman, Andrew Tyrie, said: “The CMA has taken enforcement action to bring to an end misleading sales tactics, hidden charges and other practices in the online hotel booking market.
“These have been wholly unacceptable.
“Six websites have already given firm undertakings not to engage in these practices.
“They are some of the largest hotel booking sites.
“The Competition & Markets Authority will now do whatever it can to ensure that the rest of the sector meets the same standards.£
Not all firms engaged in all of the practices cited above, but all have nonetheless agreed to abide by all the principles set out in the undertakings, Tyrie added.
The Competition & Markets Authority will now monitor compliance with the commitments made by the booking sites.
All changes must be made by September 1st.
Consumer rights organisation Which? welcomed the decision.
Rory Boland, Which? travel editor, said: “We have repeatedly exposed sites like these for using dodgy tactics like pressure selling, sneaky charges, dodgy deals and discount claims so it’s absolutely right that the Competition & Markets Authority is taking strong action.
“These changes must now be swiftly implemented to stop these misleading practices, so customers can trust the deals they’re presented with are really deals and are told the total cost of their room upfront when booking a hotel online.”