Most holidaymakers aware of CMA pricing rules, research finds

A majority of UK adults who plan or have taken an overseas holiday this year are aware that taxes and unavoidable fees in destination must be included in the total price.

Research for Travel Weekly by Harris Poll UK found three out of five (59%) consumers who have had an overseas holiday or have a holiday to come – and three-quarters (74%) of holidaymakers aged 18-34 – are aware mandatory destination charges must be included in the headline price.

However, 31% who have researched or booked a holiday abroad were not aware of the requirement.

The Competition and Markets Authority (CMA), the consumer law enforcement agency, launched an online campaign to promote its “clear pricing” rules in March after issuing guidance for travel businesses last November, warning: “It’s illegal to hide mandatory fees, taxes or charges until late in the purchase process.”

The CMA now has enforcement powers allowing it to move straight to issuing hefty fines for breaches of the law.

It announced last month that it is investigating a potential breach by Ryanair and it has imposed almost £6 million in fines on businesses in other sectors for breaching the pricing rules.

Abta senior solicitor Paula Macfarlane said: “We’ve asked the CMA if they plan anything in our industry, but they won’t give anything away. I’m not aware of CMA action in the travel sector, [but] we know they expect businesses to comply.”

A CMA spokesperson said: “We’ve been monitoring practices across the economy. We can’t comment on letters we may have sent [or] on upcoming cases. [But] we’ve been clear that tackling misleading practices, including transparent pricing, remains a priority.”

Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, said: “There is a much better understanding [of the rules] as time goes on.”

However, she said: “Trying to talk to the CMA about the issues has been a challenge. It’s a sweeping regulation that has created complexities with no real benefit.”

She asked: “Did consumers feel they were being misled [ahead of these rules being introduced]?”

Consumer research for Travel Weekly in January found 55% of those likely to take an overseas holiday this year and 60% of those who had a holiday last year expected to pay local charges when on holiday. Only 15% did not.

Harris Poll UK surveyed 1,000UK adults on June 16-22.