The government is seeking more transparency in online travel and retail pricing and an end to ‘drip-selling’ and hidden charges
Airlines, hotels and online booking sites face a ban on “rip-off” fees for luggage and other extras under plans for a crackdown on hidden charges.
Rishi Sunak has become concerned about the proliferation of booking sites and other online sales companies that are hiding the true cost of their services and has ordered a review of the practice, which is sometimes known as “drip-selling”.
The prime minister wants to see more price transparency in booking and travel sites, as well as other online retailers, and is considering whether regulation is needed to make it easier for customers to shop around.
The travel sector has been singled out for using “underhand” pricing, with car hire companies as well as budget airlines and hotels notorious for adding on fees to the advertised price before checkout. Some event ticket sites have also sometimes faced accusations of stinging customers with additional charges at the last minute.
“I think we’re all probably anecdotally and individually aware of this practice of, you know, you just get more and more things added on to the cost of something as you move through a process and there’s just not the kind of price transparency that you’d expect,” Sunak told reporters during a visit to the United States. “We’re concerned about that.”
The Department for Business and Trade has been asked to conduct a review of drip-selling to make recommendations on any extra rules needed. “This is a practice that we want to make sure that we’re across, looking at, to see how harmful it is and if we need to take further action,” Sunak said. “We want to make sure that we keep helping people with the cost of living.”
The timescale of the government review has yet to be decided, as has how any clampdown would be enforced.
Rocio Concha, director of policy at the consumer group Which?, said: “Drip-pricing is an underhanded way of squeezing extra cash out of consumers and is particularly concerning during a cost of living crisis, when it’s more important than ever for shoppers to be able to stick to a budget.”
She said this was “a big problem with airline bookings, where consumers are charged hefty fees for basic extras, such as reserving seats”, but added: “Drip-pricing happens in a variety of sectors, from train bookings to food delivery apps and concert tickets. Fees can be added late into the buying process, making it more likely that consumers will accept them and harder to compare prices.
“It is positive that the government is reviewing these misleading practices but it must go further by explicitly banning drip-pricing in its Digital Markets, Competition and Consumers Bill to put a stop to this behaviour.”
Low-cost airlines, hotels and other travel sites often use eye-catchingly cheap headline rates to draw in customers, only to use add-ons to ensure they spend more. Many now only allow a small under-seat bag and split up families on board unless they pay to sit together, among other techniques to raise revenue.
Pricing algorithms can take the time of a flight and passenger profiles into account when deciding how much to add on, with baggage fees “from £5.99” sometimes topping £70.
How the add-ons add up
Plane tickets With return tickets available for just £184.98 on EasyJet, holidaymakers may be drawn to the idea of spending a week on the picturesque beaches of Malta later this month. But those hoping to keep costs down would do well to pack light. Included in the base price is just one small under-the-seat cabin bag. Holidaymakers hoping to bring an additional large cabin bag will have to pay an additional £77.48 per flight, with passengers hoping to take a 23kg hold bag asked to pay an additional £104.96 per flight, over £10 more than the cost of a one-way journey.
Hotel bookings A “saver rate” for a standard room in Travelodge’s Central Mitchell Lane hotel in Bristol is available for £211 for the weekend of June 30 and July 1. Its location in the city centre would be attractive to some seeking an affordable city break, but the discretionary wifi, available for £3 per day and limited for use on a maximum of two devices, is likely to deter some. Travelodge offers 30 minutes of free wifi per device every day at all its hotels.
Events The cheapest tickets to watch the Who at the O2 next Wednesday are listed on AXS, the online ticketing website, for £78.35, but revellers will have to spend an additional £2.50 in transaction fees to purchase the ticket, bumping up the price of a ticket to £80.85.
Source: The Times
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