Bombshell study reveals the travel companies still ignoring new rules on dodgy add-on costs - and how they could be breaking the law
You're reeled in by a very low price – and then end up with a much bigger figure by the time you get to the check-out, thanks to extra admin and booking fees.
The Digital Markets, Competition and Consumers (DMCC) Act – a new law that came into force in April – was meant to stamp out those pesky add-on costs.
But, in a new investigation, Which? has found that many well-known travel brands, including Megabus, Wowcher and loveholidays, are potentially breaking the law by ignoring or at least dragging their feet on the new rules.
In the most extreme cases, travellers could find themselves paying hundreds of pounds more than the upfront price.
When looking at booking a hotel resort using comparison sites Kayak and Trivago, Which? found a huge variation in prices between the cheapest and most expensive hotel deals, including at the Excalibur Hotel in Las Vegas.
The experts at Which? found a week's stay in July was just £371 on loveholiday, while Booking.com and Hotels.com both said the price is closer to £700.
Loveholidays claimed its price 'includes hotel fees and local tourist tax'.
When Which? contacted loveholidays, it admitted the price did not include the full hotel fees that Booking.com and Hotels.com took into account.
Instead, there was a staggering £257 extra to pay when you checked out.
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 are required to tell customers about these fees from the start, under the new DMCC Act.
Which? claim that after the consumer champion contacted loveholidays in February, it tweaked the listing very slightly, removing the claim that its price includes hotel fees and adding the caveat 'depending on your hotel's policy, you may also be asked to pay additional hotel fees'.
Which? also claims that loveholidays said it will ensure it is compliant with new laws before they come into effect but when the consumer champion checked in May, it claims this had not happened.
It adds: 'Unlike many of its rivals, it still did not show the resort fee for the Excalibur.'
Loveholidays' listing now says: 'Your hotel may charge additional fees, which must be paid there,' but does not reveal that these unavoidable fees could add hundreds of pounds to the cost of your stay.
When Which? contacted loveholidays again, the holiday site apparently didn't give a statement but did suggest it was looking into showing resort fees in its prices.
Until it does, Which? says it believes the company is breaking the law.
Experts at Which? add: '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.'
Which? found a similar problem when it looked at holiday deals on discount website Wowcher.
A week's summer holiday to Malta, which initially appeared to cost £1,278 had a £9.99 'administration fee' at the point of checkout.
In February, Wowcher told Which? it was reviewing how its admin fees were implemented and would make sure it continued to comply with any applicable law.
However, in May Wowcher was still applying the £9.99 admin fee, according to Which?
Meanwhile, when Which? looked at budget coach company Megabus, it also found issues.
The experts initially found a one-way ticket from London to Birmingham for a bargain £5.99 on the Megabus website, only to be hit with an extra £1.50 booking fee at checkout – putting the price up by 25 per cent to £7.49.
Megabus told Which? in February that it would comply with any new regulation.
However, when Which? checked again in May for a journey on the Megabus.co.uk website,it claims a £1.50 booking fee still appeared just before payment.
The experts at Which? add: 'The fee is not mentioned anywhere earlier in the purchasing process on the site.
'On the National Express website there is a disclaimer that headline prices exclude a £1.50 booking fee. This is clearer than Megabus.'
Megabus told Which? that it's 'committed to offering transparent and affordable travel' and it would update its prices to ensure the booking fees are clearly shown at the start of the booking process by the end of May 2025.
The DMCC Act means the Competition and Markets Authority (CMA) can issue fines of up to £300,000 or 10 per cent of worldwide turnover (whichever is higher) without having to go to court.
Trading Standards can also enforce the rules.
In the first 12 months of its enforcement the CMA has said that it will prioritise clear infringements of the law and practices that are particularly harmful to consumers.
This includes 'fees that are hidden until late in the buying process,' among other issues.
Which? believes that travel brands are still using these dodgy add-on fees to squeeze more money out of customers, which would be against the law.
Rory Boland, Editor of Which? Travel, said: 'Sneaky fees and add-ons can significantly change the final price people pay for holidays and the difference between the advertised price and the final total can reach hundreds of pounds in the worst cases.
'We've uncovered examples of brands ignoring new rules that are there to protect customers from being hit with unexpected fees and we believe they could be breaking the law.'
In response to Which?'s study, Megabus said: '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.
'We fully support efforts to improve transparency in pricing across the travel industry and will continue to ensure our practices align with the latest regulations.'
Wowcher added: 'Wowcher has implemented various changes to its website to ensure compliance with the DMCC Act.
'This has included 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.'
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