Speaking to TTG on the condition of anonymity, agents flagged several issues they have with the Digital Markets, Competition and Consumers Act (DMCCA), which was published by the CMA last year.
In addition to encouraging customers to book directly with operators, agents suggested they are now more inclined to book travel firms which offer price parity and asked why the CMA did not “engage more with the trade” to better understand the situation.
One agent said: “I usually post at least one monetary offer a week on my socials, but I just haven’t because I think it’s quite a grey area at the moment.
“I've held back from doing monetary offers on my socials. It will certainly make everybody think very carefully about what they do publish.”
Another agent believes “less scrupulous agents steal offers off people’s pages”. “Now you have to tell anybody who sees your page where the offer has come from,” said the agent.
“So, a less scrupulous agent, who can't be bothered to put their own offers together, can just simply steal your offer.”
The agent also questioned how trade-only tour operators are affected by the guidance. “If you use someone like Jetset or Gold Medal or Lusso or somewhere like that, that are trade-only, is that just going to cause confusion?," they said.
'Luxury customers can also be price sensitive'
Agents have also voiced concerns over the impact of the new CMA guidance on the luxury market.
“We may offer a personal service and are always available in a crisis. However, for a lot of clients, those considerations are forgotten when cost comes into the equation,” one advisor told TTG.
This sentiment was echoed by another agent who said: “I’d always try to support a specialist luxury operator over mainstream due to the service being head and shoulders above when things don’t go to plan – but sometimes it’s impossible for them to compete on price.”
The CMA is trying tackle unfair pricing practices and sales tactics. These include misleading offers, extra charges and so-called “drip pricing” as well as firms pressuring customers into acting quickly or spending more than they intended.
In November, the CMA launched eight formal investigations and issued more than 100 letters outlining concerns about unfair pricing practices.
The holiday and package travel sector topped the list of the 14 types of businesses concerning the CMA, receiving 19 advisories, although no travel businesses were among the eight targeted by the CMA for formal investigation.
CMA guidance 'more nuanced' than many people think
Themis Advisory Partner Jo Kolatsis said the CMA's price transparency guidance does not mean travel businesses must disclose the "name of every supplier in every advertisement or quotation".
"The position is more nuanced than that and depends on the type of communication being provided and the nature of the travel arrangement being sold," she added.
"There's an important distinction between a marketing advertisement designed to generate enquiries and an invitation to purchase, where additional material information requirements may arise."
She added: "The information that should be disclosed will often depend on where the communication sits within the customer journey."
On advertising package holidays, Kolatsis said: "For a package holiday, the key issue will ordinarily be ensuring that the consumer understands who the organiser is and who they are contracting with.
"However, I do not read the CMA guidance as requiring every supplier involved in delivering the package to be named in every quote as a matter of course."
Businesses should focus on ensuring consumers receive "clear, accurate and transparent information about the holiday being sold, the identity of the organiser or supplier where relevant, and the contractual arrangements that apply, rather than assuming that a single disclosure approach will apply to every type of travel booking".
The CMA told TTG when a trader gives information to consumers about a product and its price, this will normally be an "invitation to purchase".
It added: "There are several categories of information that must be in an invitation to purchase, including the main characteristics of the product, the total price and the identity of any other person on whose behalf the trader is acting.
"A trader may also have to provide other information if the average consumer is likely to need it to make an informed decision.
"While, for example, it may not be a specific requirement under the DMCCA, a more granular breakdown might be required if it is likely to impact people’s decisions, but this will depend on the circumstances."
