Travel firms ignoring new rules on drip pricing could be breaking the law, Which? finds
In a new investigation, the consumer champion has found that despite a new law - the Digital Markets, Competition and Consumers (DMCC) Act - coming into force in April, many well-known travel brands including Megabus, Wowcher and loveholidays are potentially breaking the law by ignoring or at least dragging their feet on the new rules. In the most extreme cases, travellers could find themselves paying hundreds of pounds more than the upfront price.
When looking at booking a hotel resort using comparison sites Kayak and Trivago, there is a huge variation in prices between the cheapest and most expensive hotel deals.
One example Which? found was the Excalibur Hotel in Las Vegas. A week's stay in July is just £371 on loveholidays. In contrast, Booking.com and Hotels.com both say the price is closer to £700. Loveholidays claimed that its price ‘includes hotel fees and local tourist tax’. When Which? contacted loveholidays it admitted that the price did not include the full hotel fees that Booking.com and Hotels.com did take into account. There is a staggering £257 extra to pay when you check out.
Excalibur, like most hotels in Las Vegas and many other hotels in the US and the Caribbean, has what it calls a ‘resort fee’ – a mandatory charge for services you may or may not use. This allows it to advertise a price that you pay in advance, and another hefty sum when you leave. This is legal, although heavily criticised even in the US, but websites aimed at the UK market need to tell customers about these fees from the start.
After Which? contacted loveholidays in February it tweaked the listing very slightly, removing the claim that its price includes hotel fees and adding the caveat ‘depending on your hotel’s policy, you may also be asked to pay additional hotel fees’.
It told Which? that it will ensure it is compliant with new laws before they come into effect but when the consumer champion checked in May this had not happened. Unlike many of its rivals, it still did not show the resort fee for the Excalibur. It now says: ‘Your hotel may charge additional fees, which must be paid there,’ but does not reveal that these unavoidable fees could add hundreds of pounds to the cost of your stay.
When the consumer champion contacted loveholidays again it didn’t give a statement but did suggest that it was looking into showing resort fees in its prices. Until it does, Which? believes that the company is breaking the law. Some other less well-known sites are also failing to include resort fees but most of the big ones - including Booking.com, Expedia, Hotels.com and Lastminute.com do include them.
When Which? looked at budget coach company - Megabus - it found a one-way ticket from London to Birmingham appears at a bargain £5.99 when paying online on the Megabus website. However, just before checking out customers are faced with an extra £1.50 booking fee – putting the price up by 25 per cent to £7.49.
Megabus told Which? in February that it would comply with any new regulation. However, when Which? checked again in May for a journey on the Megabus.co.uk website a £1.50 booking fee still appeared just before payment. The fee is not mentioned anywhere earlier in the purchasing process on the site.
London to Bath journeys are actually operated by National Express. On the National Express website there is a disclaimer that headline prices exclude a £1.50 booking fee. This is clearer than Megabus.
Megabus told Which? that it’s ‘committed to offering transparent and affordable travel’ and that it would update its prices to ensure the booking fees are clearly shown at the start of the booking process by the end of May 2025.
Which? found a similar problem when it looked at holiday deals on discount website Wowcher. A week’s summer holiday to Malta, which initially appeared to cost £1,278 had a £9.99 ‘administration fee’ at the point of check out.
In February, Wowcher told Which? it was reviewing how its admin fees were implemented and would make sure it complied with any applicable law. Importantly, the law says that where fees can’t be calculated in advance (for example if they’re variable), they still need to be clear about how they will be calculated. However, Which? checked Wowcher again in May and it had still not made it clear upfront how its admin fees are calculated.
For now, the new law means the competition regulator can issue fines of up to £300,000 - or 10% of worldwide turnover - whichever is higher - without having to go to court. Trading Standards can also enforce the rules.
In the first 12 months of its enforcement the CMA has said that it will prioritise clear infringements of the law and practices that are particularly harmful to consumers. This includes ‘fees that are hidden until late in the buying process,’ among other issues.
Which? believes that travel brands are still using these dodgy add-on fees to squeeze more money out of customers, which would be against the law.
Rory Boland, Editor of Which? Travel, said:
“Sneaky fees and add-ons can significantly change the final price people pay for holidays and the difference between the advertised price and the final total can reach hundreds of pounds in the worst cases.
“We’ve uncovered examples of brands ignoring new rules that are there to protect customers from being hit with unexpected fees and we believe they could be breaking the law.”
-ENDS-
Notes to editors:
Right of Replies:
Megabus said: "We are committed to offering transparent and affordable travel for our customers. We are currently making updates to our website - due to be completed by the end of this month - to ensure that all fees — including our £1.50 booking fee — are clearly highlighted at the start of the booking process.
"We fully support efforts to improve transparency in pricing across the travel industry and will continue to ensure our practices align with the latest regulations."
Wowcher said: “Wowcher has implemented various changes to its website to ensure compliance with the DMCC Act, including providing an estimate of its variable admin fee within its pricing “splat” which appears clearly and prominently on our deal pages prior to the customer reaching checkout. Our intention is to ensure that our website is clear and transparent for customers, allowing them to make purchase decisions with confidence on the Wowcher platform.”
About Which?
Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.
The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.