ACM warns consumers about price shifts when booking vacation trips
The Netherlands Authority for Consumers and Markets (ACM) sees that tour operators now present the additional costs correctly. In addition, ACM sees that, with three package tour providers, consumers are confronted with price shifts during the booking process. As a result, they cannot book their trip for the first price that was presented. This is not allowed. Consumers must be able to rely on the fact that the trip can be booked for the first price that the tour operator presents. In that way, consumers are also able to compare different offers and operators properly. That is why ACM has imposed orders subject to periodic penalty payments on three providers to force them to present their prices correctly.
Cateautje Hijmans van den Bergh, Member of the Board of ACM, adds: “For consumers, price is one of the most important selection criteria. People must be able to compare prices from different providers easily. They can only do so if the first price presented is the price for which the trip can actually be booked, including all mandatory costs. That is why we warn consumers who wish to book vacation trips ‘last minute’.”
Investigation into travel prices
In early 2022, ACM announced it would investigate prices in the travel industry again. In that context, ACM checked 12 package tour providers. The investigation focused on price shifts and the correct presentation of prices including all mandatory additional costs, such as tourism taxes. The investigation into the presentation of prices including all mandatory additional costs revealed that 11 of the 12 providers presented the mandatory additional costs incorrectly. All 12 companies now present their prices including all mandatory costs. With regard to the price shifts, ACM has now imposed orders subject to periodic penalty payments on three tour providers. The decisions will be made public at a later point in time.
Rules for clear travel prices
ACM’s general basic principle is that consumers must be able to have confidence that the first price that is presented is the price that they can book the trip for. The price may and can change if consumers enter more details about the trip and travel companions. However, if you wish to book the trip that was initially offered without any changes, you must be able to do so for the price of the initial offer.
If the trip cannot be booked for this price, it is considered a misleading practice. During the investigation, ACM established that the initial price often is not the price that individuals eventually book their trips for. Prices went both up and down. For example, a trip to Bali for three people was offered for 2,400 euros. If you decided to book this trip, the price of that same trip went up to 3,000 euros during the booking process, a price increase of 25 percent.
This is harmful because people are less likely to switch to a different offer or provider once they are already going through the booking process for a specific trip. Therefore, consumers pay more money for a trip than if they had accepted a different offer. This is bad for consumers and it is a form of unfair competition. The price of the trip must be presented including all unavoidable costs. Additionally, all other costs must be visible at a single glance. That is why ACM issues a warning now, so that consumers are alert to this when booking their vacation trips.