Loveholidays 'testing solutions' to show accurate prices after Which? investigation

Loveholidays said it is "actively testing solutions" to show accurate prices for US trips after Which? accused it and other firms of flouting rules on ’drip pricing’.

 

The Digital Markets, Competition and Consumers (DMCC) Act came into effect in April and introduced a ban on drip-pricing – where shoppers are shown an initial price for a product but more fees are added, or ‘dripped’, as they proceed with their purchase.

 

But Which? said that, following an investigation, it had found a number of firms including Megabus, Wowcher and loveholidays “potentially breaking the law” by ignoring or “dragging their feet” on implementing the new rules, with travellers paying “hundreds of pounds more than the upfront price” in some cases.

 

Which? said its investigation found a week’s stay at the Excalibur Hotel in Las Vegas in July was priced at £371 on loveholidays, but closer to £700 on Booking.com and Hotels.com, adding loveholidays claimed its price “includes hotel fees and local tourist tax”.

 

Which? said that when it contacted loveholidays, the online agency (OTA) admitted that the price did not include the full hotel fees that Booking.com and Hotels.com had taken into account.

 

“There was a staggering £257 extra to pay when you check out,” said a Which? spokesperson. 

 

They continued: “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.”

 

Which? said it was told by loveholidays in February that the OTA had “tweaked the listing very slightly, removing the claim that its price includes hotel fees”, but added that when it checked again in May, “this had not happened”.

 

The spokesperson added: “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.”

 

In response to the investigation, a loveholidays spokesperson said: “We remain committed to providing customers with clear and accurate pricing information throughout our booking journey, and we are actively testing solutions that will enable us to present resort fees where they apply in the near future.”

 

Megabus said in a statement: "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.”

 

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.”