Trading standards attack ‘fictitious’ online travel prices

Budget airlines and tour operators that continue to abuse holiday and flight pricing on the internet have come under fire from trading standards officials.

The Trading Standards Institute said airlines and operators were still advertising headline prices that are “totally fictitious” – even though a deadline issued by the Office of Fair Trading for them to stop misleading the public ran out on May 10.

Since then the OFT won a pledge from the majority of companies to comply with the law by the end of July – a move welcomed by the TSI.

OFT head of consumer protection enforcement Mike Haley said: “Following our deadline that expired on May 10, we have been involved in formal consultation with airline and travel companies to ensure greater transparency for consumers. 

“We now have agreement with most of them that they will amend their websites appropriately – and we will not hesitate to take court action against any that still refuse to toe the line.”

The OFT will announce more details of its moves next week.

A spot check on June 21 by Bruce Treloar, the TSI’s spokesman on the holiday and travel industry, found two immediate examples on the internet of continued abuse – one by a major no-frills airline and the other by a leading tour operator.

The airline guaranteed to save consumers money, stating that prices included taxes, fees and charges – but, for a flight to Dublin advertised at £10, the following page stated ‘fares do not include taxes, fees and charges’.

The operator’s website offered holidays to Turkey from £117 per person (£234 for two people) – but, on selecting the dates, the holiday summary four screens later showed a price of £358 for two, with a massive list of supplements. These included: fuel supplements of £80 per person; ‘late booking charge’ of £30 per person; an ‘adult supplement’ of £28 per person; air passenger duty (government tax) of £10 per person; air passenger levy of £10 per person.

Treloar said: “This was just a snapshot of the current concerns for the consumer. But it just should not still be happening.

“In February 2006 we provided examples of the abuse to the OFT and last November, during TSI National Consumer Week, we again highlighted the practice of advertising holidays and flights at prices that fail to include all the compulsory extras.

“In February this year, the OFT warned all holiday and travel suppliers that the practice of separating non-optional extra costs to holidays and flights was illegal and that it intended to take action.

“We supported this excellent proposal and, on May 11, 2007, the OFT issued another press release warning the deadline for complying with the law had expired the day before. Some companies are doing it right, so it is unfair on them that others are getting away with it.”

Ron Gainsford, chief executive of TSI, speaking at TSI’s annual conference  in Manchester, said: “We have every confidence in the powers of the OFT and understand that the majority of airline and travel companies have now agreed to modify their websites to reflect honest prices by the end of July.

“Consumers should expect clear, transparent pricing and not have to search around to get the true price.

“Enough warnings have been given to the industry – and it is the intention of TSI to work with the OFT to stamp out this marketing ploy, which is costing consumers.”

by Phil Davies