CMA launches enforcement action against hotel booking sites

The Competition and Markets Authority (CMA) has launched enforcement action against several hotel booking sites requiring them to address CMA’s concerns. The CMA’s investigation identified flaws in the sites’ search results, pressure selling, discount claims and hidden charges, urging them to take action as it claims they are “breaking consumer protection law”. The report said there are concerns in how the hotels are being ranked, claiming search results are influenced by factors that “may not be relevant to the customer’s requirements”, referring to the amount of commission a hotel pays a site. The CMA is also concerned with how sites rush customers into making a quick decision when revealing the quantity of people looking at a room or when the site reveals rooms that may be left, which, according to the CMA, creates a false impression of room availability. Other concerns included discount claims not being offered as a fair comparison for customers and whether sites disclose all costs in the price, as the CMA claims customers encounter unexpected fees such as booking fees or taxes. In addition to the enforcement action, the CMA also sent warning letters to several sites, requiring them to review their terms and practices to ensure these are fair and comply with consumer protection law. The CMA has also asked the Advertising Standards Authority (ASA) to review if statements such as ‘best price guarantee’ or ‘lowest price’ trick customers with price promises that are later not met. Andrea Coscelli, CEO of the CMA, said: “Booking sites can make it so much easier to choose your holiday, but only if people are able to trust them. Holidaymakers must feel sure they’re getting the deal they expected, whether that’s securing the discount promised or receiving reliable information about availability of rooms. It’s also important that no one feels pressured by misleading statements into making a booking. “That’s why we’re now demanding that sites think again about how they’re presenting information to their customers and make sure they’re complying with the law. Our next step is to take any necessary action – including through the courts if needed – to ensure people get a fair deal.” Angela Vickers, CEO of Apex Hotels, said to Hotel Owner: “We welcome the CMA investigation into booking sites. We are especially interested to hear the watchdog is looking into the prices which first show when consumers search and if these reflect the final cost. “More and more people are choosing to make bookings online and it’s important that consumers are protected from misleading information. Hopefully this investigation will weed out any sites which are not playing fair or pulling the wool over customers’ eyes. “In the meantime I would encourage anyone with concerns to book direct with hotel reservations or the hotel website as we always put the customer first and our costs are transparent. Very often we can personalise the customer stay with additional perks.”