Watchdog cracks down on hotel booking sites over breaches in consumer protection law

Competition regulator has been investigating sector since last year and has warned firms they could face court action

Some sites may be pressuring people to book with claims about availability and prices (Reuters)

Hotel booking sites have been told by the competition watchdog to change their business practices or risk court action.

The Competition and Markets Authority (CMA) has been investigating the sector since last year and said on Thursday that it had identified “widespread concerns” that some sites are breaking consumer protection law.

According to the CMA, there are concerns around how hotels are ranked and to what extent search results are “influenced by factors that may not be relevant to the customer’s requirements, such as the amount of commission a hotel pays the site”.

The watchdog is also looking into “pressure selling”, and whether claims about how many people are looking at the same room or how long a price is available, might rush customers into making a booking decision.

Similarly, the regulator is probing whether the discount claims made on sites offer a fair comparison for customers, and the extent to which sites include all costs in the price they first show customers or whether people are later faced with unexpected fees, such as taxes or booking fees.

The watchdog did not name any specific booking firms targeted in its investigation, but said sites must take action to address its concerns and said it will “either secure legally binding commitments from those involved to change their business practices or, if necessary, take them to court”.

In addition to requiring firms to change their practices, the CMA has also referred a number of its concerns around price guarantees and promises to the Advertising Standards Authority and asked it to look into whether terms such as “best price guarantee” and “lowest price” are misleading to customers.

Andrea Coscelli, chief executive of the CMA, said: “Booking sites can make it so much easier to choose your holiday, but only if people are able to trust them. Holidaymakers must feel sure they’re getting the deal they expected, whether that’s securing the discount promised or receiving reliable information about availability of rooms. It’s also important that no one feels pressured by misleading statements into making a booking.

“That’s why we’re now demanding that sites think again about how they’re presenting information to their customers and make sure they’re complying with the law. Our next step is to take any necessary action – including through the courts if needed – to ensure people get a fair deal.”