The Competition and Markets Authority (CMA), which enforces consumer protection and competition law in the UK, has issued pricing guidance stating that any headline price offered to consumers must incorporate mandatory charges payable on arrival or departure. This includes taxes and fees levied at hotels, ports or airports.
The guidance applies to any business providing travel arrangements to consumers, from tour operators and airlines to travel agents.
Industry body ABTA has raised the issue with the CMA, noting that in many cases agents are retailing products where the price is set by a tour operator or other supplier.
In response, the CMA acknowledged this commercial reality but said agents must nevertheless “do all they can” to ensure the prices they advertise or provide to customers are total prices, inclusive of all unavoidable charges.
Since the publication of the guidance, tour operators have been working to incorporate all relevant taxes and fees into their pricing structures.
Paula Macfarlane, Senior Solicitor at ABTA, urged travel companies to familiarise themselves with the new requirements.
“All travel companies should be aware of the CMA’s guidance,” she said.
“Although in relation to package holiday sales, the main responsibility will remain with tour operators to ensure that they are compliant, agents should also take steps to ensure that whatever they are offering to customers, the price includes unavoidable taxes and fees payable on arrival or departure at hotels, ports or airports.
“The CMA guidance contains some examples that are relevant to travel agents such as how to include local taxes in an advert for accommodation only. ABTA members can also access ABTA’s guidance on this important issue on our website.”
ABTA’s detailed guidance for members is available via the ABTA MemberZone under “CMA pricing guidance”.
