Under the Digital Markets, Competition and Consumers Act 2024, there is an increased emphasis on ensuring that pricing is accurate and does not mislead. When the Act was going through the legislative process, the government was keen to ensure that drip pricing was dealt with, which can be common in the travel sector - for example, if you book flights at a quoted fare but then taxes are added at the check-out stage.
However, drip pricing isn't the only issue that arises, and the Committee on Advertising Practice (CAP) issued a new guidance note last week highlighting some of the common pitfalls for travel marketers to avoid and with the new Act in mind. The note covers the following areas:
Non-optional costs and charges
These cover items such as VAT, non-optional fees and flight taxes, but if something is genuinely optional (such as service charges on cruises) it won't be misleading to omit it from the headline price. If it is not possible to calculate a tax, duty or fee in advance, for example, because it depends on the consumer's circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated.
Savings claims
Marketers making savings claims against a reference price must have evidence to demonstrate that the reference price was genuinely the price at which the products would have otherwise been sold. The Code also requires that ads which include a price comparison must not mislead by failing to make the basis of the comparison clear. Marketers will be expected by the ASA to provide accurate evidence of advertised prices for products, including pricing history where relevant, and it may be useful for marketers to ensure that they have reliable processes in place to monitor and record these. In addition, marketers should not continue to advertise products that are no longer available. If a fare or hotel room rate does become unavailable, ads stating this price should be amended or withdrawn whenever possible.
Availability and using "from" prices
Given the limited shelf-life of the product and the speed with which the market responds to changes in demand, tickets to the same destination often differ or fluctuate in price. If all tickets will not be available at the quoted fare, marketing communications should state prominently that prices are "from £X". Price claims such as "up to" and "from" must not exaggerate the availability or amount of benefits likely to be obtained by the consumer.
Dynamic pricing
This sort of pricing practice hit the news last year in relation to the Oasis concert ticket sales. However, it is often used in the travel sector as well. It's not an area where the ASA has issued many rulings, but CAP says that where marketers use dynamic pricing it is still their own responsibility to ensure that price statements are accurate and, if making savings claims, to hold evidence to demonstrate that a pre-discount price was genuine.
Offering "free" flights and seats
Marketers wanting to offer 'free' tickets can do so only if there are genuinely no costs to the consumer, such as taxes or charges. This also includes wording like"include "giveaway", "gift", "pay nothing". Claims which are more likely to be acceptable are "tax only", "flights for the cost of the tax" or similar, as are more subjective claims such as "cheap flights" and "bargain fares."
Credit and debit card fees
The Consumer Rights (Payment Surcharges) Regulations ban surcharges on consumer credit and debit cards. This means that traders must not charge consumers a fee on top of the advertised price of a transaction because the consumer uses a credit or debit card. This also applies to travel marketing and so marketers should not charge any additional fees based on their method of payment.
Taxes levied abroad
Marketers should state clearly whether any other taxes or charges levied abroad but not paid at the point of purchase, are payable. These should be presented clearly and immediately. If these charges cannot be calculated in advance, such as because it depends on the consumer's circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated. An example might be tourist taxes which are added to a customer's bill when the customer checks out from the hotel.
The same principles apply to travel marketing as to other sectors, but the guidance gives it a little more colour and includes some useful examples. We have more general guidance available at our Consumer Hub - please don't hesitate to contact us if you need help with your promotions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
