Watchdog forces travel booking sites to change their ways

Hotel booking sites including Expedia, Booking.com and trivago have been forced to change the way they operate by the Competitions and Markets Authority over a string of issues including pressure selling, misleading discount claims and hidden charges.

The CMA took action last year because it was concerned that practices such as giving a false impression of a room’s popularity or not displaying the full cost of a room upfront could mislead people, stop them finding the best deal and potentially break consumer protection law.

It now says that all companies under investigation by the CMA – which also included Agoda, Hotels.com and ebookers – have co-operated with its work and voluntarily agreed to change their practices.

Companies will now have to make clear how hotels are ranked after a customer has entered their search requirements – such as telling people when search results have been affected by the amount of commission a hotel pays the site, while they can also no longer a false impression of the availability or popularity of a hotel or rushing customers into making a booking decision based on incomplete information.

Meanwhile, all compulsory charges such as taxes, booking or resort fees should be clear in the headline price.

Previously, the CMA found that companies were suggesting to customer that a certain number of people were looking at the same hotel, pressuring them into making a decision – without making it clear that the other searches could be for different dates. It also found that sites were making comparisons with a higher price that was not relevant to the customer’s search criteria. CMA chairman Andrew Tyrie said: “The CMA has taken enforcement action to bring to an end misleading sales tactics, hidden charges and other practices in the online hotel booking market. These have been wholly unacceptable.

“Six websites have already given firm undertakings not to engage in these practices. They are some of the largest hotel booking sites. The CMA will now do whatever it can to ensure that the rest of the sector meets the same standards.”

Not all of the companies engaged in all of the practices, but the CMA said every one had agreed to abide by all the principles set out in the undertakings. It will also write to other hotel booking sites including online travel agents, metasearch engines and hotel chains setting out clear expectations for how they should be complying with consumer protection law. All sites – including ones which have not yet been subject to action – must make necessary changes by 1 September.