An ongoing probe into sales tactics by online travel agencies has seen a number of brands warned over the way they display prices and market to users.
The investigation by the Competition And Markets Authority in the U.K. was started in October 2017 and, eight months on, is now focusing on a number of elements that it says are causing "widespread concern".
No site has been singled out for its behavior, although the CMS says it has sent "warning letters" to a range of sites in a bid to ensure they clean up their act.
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The agency says the action is designed to push OTAs to "review their terms and practices to make sure they are fair and comply with consumer protection law".
Enforcement action is possible if OTAs do not comply with its request. The Advertising Standards Authority, a fellow regulator that addresses complaints against consumer brands and their marketing tactics, is also joining the investigation, the CMS says.
Issues under scrutiny
The CMA has identified four specific areas that have triggered the warnings and the threat of further action.
- Search results: how hotels are ranked, for example to what extent search results are influenced by factors that may not be relevant to the customer’s requirements, such as the amount of commission a hotel pays the site.
- Pressure selling: whether claims about how many people are looking at the same room, how many rooms may be left, or how long a price is available, create a false impression of room availability or rush customers into making a booking decision.
- Discount claims: whether the discount claims made on sites offer a fair comparison for customers. For example, the claim could be based on a higher price that was only available for a brief period or not relevant to the customer’s search criteria, such as comparing a higher weekend room rate with the weekday rate for which the customer has searched.
- Hidden charges: the extent to which sites include all costs in the price they first show customers or whether people are later faced with unexpected fees, such as taxes or booking fees.
An official for Expedia Group says: "We are aware of the announcement from the CMA. Expedia Group continuously aims to deliver attractive travel options at affordable prices on Expedia.co.uk in transparent, clear and easy to understand ways, so that our customers can make informed travel choices.
"Expedia will continue to engage with the CMA on these consumer matters, as it continues its inquiries in the travel sector."
Booking.com did not respond to a request for comment.