CMA to investigate hotel booking sites

The Competition and Markets Authority has announced plans to investigate hotel booking sites to find out whether customers are being misled.

The competition watchdog said on Friday that it will look into how hotels are ranked after a customer has entered their search requirements, for example to what extent search results are influenced by other factors that may be less relevant to the customer’s requirements, such as the amount of commission a hotel pays the site.

It will also investigate whether claims about how many people are looking at the same room, how many rooms are left or how long a price is available, create a false impression of room availability or put pressure on customers to make a booking.

In addition, the CMA will check whether the discount claims made on sites offer a fair comparison for customers. For example, the claim could be based on a higher price that was only available for a brief period, or not relevant to the customer’s search criteria. Hidden charges will also be looked into.

Chief executive Andrea Coscelli said: "Around 70% of people who shopped around for hotels last year used these sites and they should all be confident they have chosen the best accommodation for their needs and are getting a good deal. In today’s increasingly busy world, sites like this offer real potential to help holiday-makers save time and money searching for their ideal get-away.

"To do this, sites need to give their customers information that is clear, accurate and presented in a way that enables people to choose the best deal for them. But we are concerned that this is not happening and that the information on sites may in fact be making it difficult for people to make the right choice."