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Hotel reservation sites put an end to "misleading" sales tactics after a survey conducted by the UK's Competition Authority and Markets (CMA) at six sites revealed serious concerns about certain sales strategies.
Expedia, Booking.com, Agoda, Hotels.com, ebookers and trivago have been subject to repressive measures by the AMC because of "serious concerns" regarding certain practices, said the agency. authority in a press release issued Wednesday, February 6.
These include problems such as pressure selling, misleading rebate claims, the effect of commission on how hotels are ordered on sites, and hidden fees.
The authority said it took action last year because it feared such practices – giving a false impression of the popularity of a room or not displaying the total cost of a room in advance – could misleading people, prevent them from finding the best offer and potentially breaking the consumer protection law.
Examples of such practices include selling under pressure, the authority reporting examples of sites strategically placing complete hotels in search results to encourage users to book faster.
Some sites also had fuzzy discount claims, for example comparing a higher room rate on weekends with a weekday rate or comparing the price of a luxury suite with a standard room.
"The AMC has taken steps to put an end to misleading sales tactics, hidden fees and other practices in the online hotel booking market", said the president of the CMA, Andrew Tyrie. "These have been totally unacceptable."
Not all companies have engaged in all of these practices, said the CMA. However, they all agreed to abide by the principles set forth by the authority.
All the companies under investigation cooperated with the CMA and voluntarily accepted the following:
- Search Results: Clarify the ranking of hotels after the search criteria have been entered by a customer, for example by telling Internet users that the search results have been affected by the amount of commission paid by the site.
- Selling under pressure: do not give a false impression of the availability or popularity of a hotel nor push customers to make a reservation decision based on incomplete information.
- Claim Claims: be clearer on discounts and only promote offers that are actually available at that time.
- Hidden Fees: Displays all mandatory fees such as taxes, reservation fees, or stay fees in the total price. Sites can always break down this price, but the total amount the customer has to pay must always be stated at the outset.
The CMA has indicated that it will monitor compliance with these commitments and that any changes must be made by September 1st.
She will also write to other hotel booking sites, including online travel agencies, meta-search engines and hotel chains, indicating "their clear expectations" as to how they should comply with legislation on consumer protection.
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