SPAA president criticises CMA pricing guidance

Scottish Passenger Agents’ Association (SPAA) president Alan Glen has criticised the Competition and Markets Authority (CMA) for applying its recent pricing guidance to travel agents, arguing: “Why fix a problem that didn’t exist?”

The CMA guidance, issued in November, means all unavoidable fees and taxes payable in destination need to be included in total prices shown online.

But during the SPAA’s annual dinner in Glasgow last night (Thursday), Glen said the guidance risks “opening Pandora’s box”.

He said the guidance demonstrates that the government “doesn’t understand our business”.

He added: “People already accepted they were subject to taxes in other countries and good travel agents all knew they must advise the clients of resort fees at hotels if they wanted to keep the clients – we weren’t hiding anything.

“You almost have to laugh at the irony here. Why fix a problem that didn’t exist?”

Glen said it was “beyond me” how the guidance ever got introduced.

He was speaking during the 96th edition of the SPAA’s annual dinner, which took place at the Crowne Plaza in Glasgow.

The new rules require travel sellers to include local taxes paid in destination in the ‘total price’ of a holiday before taking a booking, including in adverts.

Abta has warned of “potentially extremely serious consequences” if companies fail to take “appropriate steps” to include “unavoidable fees and charges payable at hotels, ports or airports”.

Emma Cochrane, CMA acting executive director, spelled out what the sector can expect in a speech this month, saying: “For the first time, the CMA can decide whether consumer protection laws have been infringed and issue penalties where we find a breach.”