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Expert warns CMA on lookout for ‘big-name scalp’ in travel
The Competition and Markets Authority (CMA) is likely seeking a “big name scalp” in the travel industry to demonstrate its enhanced enforcement capabilities, an industry expert has warned.
Speaking in a breakout session at the Advantage Travel Partnership conference in Madrid, Martin Alcock, director of Travel Trade Consultancy, suggested the regulator is moving beyond speculative warnings and is now actively seeking a high-profile case to serve as a “head on a stick” for the sector.
His warning comes as the Digital Markets, Competition and Consumers (DMCC) Act grants the CMA unprecedented authority to act as “judge and jury”.
Under these new powers, the regulator can bypass lengthy court processes to issue direct infringement notices and levy fines of up to 10% of global turnover.
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Speaking to Travel Weekly after the session, Alcock noted a shift in the regulator’s tone, describing the approach of CMA officials on social media as “increasingly personified”.
“The voice is very much like, ‘We are doing this’ or ‘I am taking action,’" Alcock said. “For the individuals doing it, they sort of see themselves as crusaders; they obviously feel they’re doing the right thing to protect customers.”
He referenced a recent case involving The AA which resulted in a £4.2 million fine for undisclosed £3 transaction fees – a penalty Alcock described as “eye-watering” and “out of kilter” with the actual consumer hit of £750,000.
In the same session, Aviation and travel lawyer Jo Kolatsis, director of Themis Advisory, reinforced the belief that the travel industry is “low-hanging fruit” for the CMA due to complex pricing structures.
New price transparency guidance requires that every “invitation to purchase” – including social media ads and window cards – must include all mandatory taxes and non-optional charges, such as local resort fees.
However, Alcock warned this has created a “double unfairness” for businesses that have already invested heavily in IT systems to comply.
“By complying, your prices look more expensive than the other guys,” he explained.
He added that some companies are reportedly sitting on compliant technology but refusing to “turn it on” until the CMA makes its first major move.
Kolatsis urged agents and operators to audit their marketing practices immediately, noting that “AI bots” are now being used by regulators to scan travel advertisements for misleading “lead-in” prices and false claims of scarcity.
“Don’t panic, but early engagement is always a good way of dealing with it,” Kolatsis said.
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