The CMA on Thursday (June 28) vowed to clampdown on rogue operators and take any necessary enforcement action against sites deliberately misleading consumers.
Enforcement action is under way, with the CMA already targeting a number of as yet unnamed hotel bookings websites - and stressing it will not shy away from issuing legal proceedings.
An ongoing CMA investigation, launched last October, has uncovered what it described as “widespread concerns” over practices throughout the hotel booking sector.
Key CMA concerns include:
- 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.
Andrea Coscelli, CMA chief executive, 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 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.”
Further to its enforcement activity to date, the CMA has issued warning letters to a number of sites demanding they review their terms and practices to ensure they are fair and compliant with consumer protect law.
It is also referring concerns around hotel booking sites’ price guarantees and other price promises to the Advertising Standards Authority (ASA).
The CMA has asked the ASA to consider whether statements like “best price guarantee” or “lowest price” are misleading customers and what conditions must be met for companies to make such claims.
Further enforcement action would likely follow, the CMA has said.
