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Hotel booking sites probed by consumer watchdog | Hotel booking sites probed by consumer watchdog |
(about 1 hour later) | |
Hotel booking sites are to be probed by the UK's competition watchdog to see if consumers are being misled by them. | |
The Competition and Markets Authority (CMA) said it was "concerned about the clarity, accuracy and presentation of information on sites". | The Competition and Markets Authority (CMA) said it was "concerned about the clarity, accuracy and presentation of information on sites". |
The investigation will examine areas such as hidden charges, search results, and discount claims. | The investigation will examine areas such as hidden charges, search results, and discount claims. |
The CMA has written to companies across the whole sector. Leading booking sites include Expedia and Booking.com. | |
The watchdog says 70% of people who shopped around for hotels use such sites. | |
It is seeking evidence from both the websites and hotels, and would also like consumers to get in touch with it and share their experiences. | |
It will look into how search results are ranked, and whether this is linked to the commission that hotels pay sites. | |
The CMA also wants more information on whether extra charges, such as taxes and booking fees, are clearly displayed. | |
Another area being looked at is the way sites display how many rooms are left or how many people are viewing a particular hotel. | Another area being looked at is the way sites display how many rooms are left or how many people are viewing a particular hotel. |
The CMA is concerned this is used for "pressure selling", creating a "false impression of room availability or rush customers into making a booking decision". | The CMA is concerned this is used for "pressure selling", creating a "false impression of room availability or rush customers into making a booking decision". |
'Commercial considerations' | |
Nisha Arora, a senior director at the CMA, told the BBC's Today programme: "We are concerned about the clarity and accuracy of these sites. Rather than helping consumers they may actually be making it more difficult for them." | |
She explained that the suggestions offered by such sites were not ranked solely on the preferences entered by the user. | |
"When you put in your criteria - which room you want, when you want to stay - they are listed in a certain order. This is not just influenced by consumer preference but by commission - commercial considerations - and consumers might not be aware of this." | |
Of specific interest to the CMA are the messages that claim to state the last time at which a similar room was booked, and the message that claims a number of others are looking at the same hotel. | |
Ms Arora said the CMA wanted to hear how the sites gathered the information for these claims. | |
The investigation into hotel websites follows a year-long CMA probe into price comparison sites. | The investigation into hotel websites follows a year-long CMA probe into price comparison sites. |
In that investigation, the regulator found that consumers needed to hunt for deals as they do on the High Street when using switching websites for energy, holidays or insurance. | In that investigation, the regulator found that consumers needed to hunt for deals as they do on the High Street when using switching websites for energy, holidays or insurance. |
The CMA concluded that price comparison websites worked best for car insurance and worst for broadband. | The CMA concluded that price comparison websites worked best for car insurance and worst for broadband. |