Hotel booking sites investigated over ‘just one bed left’ ruse

HOTEL booking websites may be putting pressure on holidaymakers into booking accommodation by falsely claiming there is “only one bed left”.

The Competition and Markets Authority is to investigate comparison websites after complaints that consumers are being exploited by some dubious practices.

Of particular concern, it says, are pressure selling, the use of hidden charges to hike prices, and false claims about the discounts available.

Pressure selling, where websites can create the impression that available rooms are running out or where they appear to rush customers into making a decision, is routinely used by Booking.com and Expedia.com, it is alleged.

The regulator says it will also examine the accuracy of advertised discounts, where, for example, they might compare a higher weekend room rate with the weekday rate for which the customer has searched.

Hidden charges such as taxes or booking fees that may be omitted in the advertised price will also come under scrutiny by the watchdog.

If the CMA concludes the websites are falling foul of consumer law, it could ban the practices. It comes after a study by the consumer group Which? found last year that discounts offered on Expedia and Booking.com were potentially misleading.

Government guidelines stipulate that items on sale must have been available at the higher price for 28 consecutive days.

However, Which? found instances where sales were based on the past 14 days’ prices.

‘We found evidence of booking sites using pressure tactics and claims about discounts that don’t add up’

Andrea Coscelli, chief executive of the CMA, said some of the information on websites could be making it more difficult for people to arrive at an informed decision.

He said: “Around 70 per cent of people who shopped around for hotels last year used these sites and they should all be confident they have chosen the best accommodation for their needs and are getting a good deal.

“In today’s increasingly busy world, sites like this offer real potential to help holidaymakers save time and money.

“To do this, sites need to give their customers information that is clear, accurate and presented in a way that enables people to choose the best deal for them.

“But we are concerned that this is not happening and that the information on sites may in fact be making it more difficult for people to make the right choice.”

Alex Neill, a Which? managing director, said: “When shopping around to book a hotel, it’s vital that consumers are confident that they can find the best deal.

“We found evidence of booking sites using pressure selling tactics and making claims about discount deals that don’t add up. If the CMA finds breaches of consumer law, they should take enforcement action against those sites.”

The CMA has written to firms across the sector requiring them to give information about their activities.

A spokesman for Expedia said: We welcome further discussion with the CMA to review how platforms provide transparency to the market, increasing competition between hotels and to increase consumer benefit.”

Booking.com declined to comment.