Guidance

Being transparent with your customers: a short guide for online accommodation booking sites

Published 26 February 2019

The CMA has identified serious concerns about certain practices commonly used in the online accommodation booking sector after an investigation into Expedia, Booking.com, Agoda, Hotels.com, ebookers and trivago who have given commitments to change their practices.

Following this investigation we have published principles to help your business comply with consumer law. If your business is using any of the practices highlighted, you need to make changes by 1st September 2019. We have set out our expectations on what you should and shouldn’t do below.

Why consumer law compliance matters

Using sales tactics like misleading pressure selling, misleading discount claims, not disclosing the role that money your business earns plays in search results’ rankings, and hidden charges can harm customers and the reputation of your industry. It also puts you at risk of breaking consumer protection law.

Who these principles apply to

• all online accommodation booking sites which offer services to UK consumers, including online travel agencies, search engines, big hotel groups and short-stay apartment rentals, as well as smaller businesses selling travel accommodation online, should make necessary changes by 1 September 2019

• online retailers who operate in other markets where similar marketing practices are prevalent should also consider reviewing their practices to ensure compliance with the law

Sales practices you must assess:

Search rankings

• prominently tell customers if the money you earn on bookings or “clicks” affects the order of results the customer sees
• clearly label ‘paid for’ search results – for example, if a hotel has paid for a pre-determined or prominent position, say so
• clearly differentiate ‘paid for’ listings with those that aren’t ‘paid for’

Reference prices

• don’t present something as a discount – by using “strikethrough” prices or savings claims – unless the offer gives a real saving on a “like for like” basis
• if you’re making a “was/now” discount claim, make it clear what the “was” price relates to – was it for different stay dates or different occupancy?

Hidden charges

• be upfront about unavoidable fees, charges and taxes and always give the total price
• never try to hide unavoidable costs - revealing them towards the end of a purchase can be misleading and unfair

Pressure selling

• don’t use false or misleading messages about popularity and availability
• when making statements about availability, make sure you tell the whole story, for example ‘XX people have viewed this property in the last 30 minutes for different dates’, ‘Destination Y is XX% booked on this site for your dates’ and ‘Only X rooms left at this price on this site’

Businesses in the online accommodation booking sector must be fully compliant with the principles and consumer protection law by 1 September 2019.

Those who aren’t risk facing CMA enforcement action, which could lead to the CMA seeking a court order.

To find out more, see the CMA’s Consumer law: principles for online accommodation booking platforms.

If you are unsure whether a marketing practice complies with consumer protection law always seek legal advice.

This document is not legal advice and should not be relied upon as such.