p4 News Sept18 16/9/09 21:20 Page 4
news
18.09.2009
Two web travel retailers have turned on competitors who they
claim are using bait-and-switch pricing to offer customers
unobtainable prices. Rupert Murray reports
Online agents rap
rivals’ false prices
AN ONLINE sales tactic known as director David Hawke said some online
“bait and switch” is in danger of
C
O
agents were posting misleading
TRADING STANDARDS.
destroying consumers’ faith in web
STO
VER
prices and hiding behind the
agencies and dragging other agents
R
Y
constant movement in pricing.
Advertised rates
into bad practices, say retailers. That put him under pressure to
The tactic involves displaying prices copy the practice to compete, he said,
that consumers have little or no chance adding: “We do price comparisons with
‘must be offered’
of getting, taking an “order” for that price competitors and some are advertising at a rate
and then contacting them with a higher price lower than net, so they can’t actually be selling WEBSITES that do not offer live availability run
including extras such as booking fees and at this price. the risk of falling foul of the law, according to
ticket-on-departure charges. “It is difficult because part of you thinks you Trading Standards travel officer Bruce Treloar.
Agents such as Travel Republic and Monster should follow suit to be able to compete. On one site, Sunsave.com, the terms and
Travel, which say they display only available “But we want to remain transparent, not offer conditions state: “This website is for the purpose
prices, are calling for stricter regulation to stop prices we can’t fulfil, nor add all sorts to the of communicating prices and availability, it
the practice. price at a later stage in booking, such as luggage should therefore not be regarded as an offer.”
Travel Republic managing director Kane Pirie – who in their right mind isn’t going to take It adds: “We reserve the right to change our
said: “It is becoming obvious there are agents luggage on holiday?” prices or other details at any time.”
who work this grubby sales tactic known as On The Beach marketing director Alistair Daly Treloar said: “If an advertised price is not
‘bait and switch’. backed calls for clearer pricing. available to sell at, a company can be taken to
“This involves deliberately holding out a much “On The Beach is 100% committed to price court and fined £5,000. It cannot put in its terms
lower price, taking the booking ‘order’ and then transparency,” he said. “And we would fully sup- and conditions that prices will be altered.”
going in for the kill over the phone.” port any move towards an industry standard Treloar also said a “reasonable” number of
Travel Republic and Monster Travel have which would, in turn, champion the consumer.” holidays must be available at an advertised price.
“live availability”, meaning customers can book Sunsave.com’s website offers hotels, flights
at the price they see. Monster Travel managing ■ Gripe about web pricing: Letters, p34 and accommodation from £89. But when TTG
called to ask what was available at that price only
What is bait and switch?
one holiday – four nights in a specific hotel in
Portugal on a specific date – was offered.
“Bait and switch” is a technique designed to lure headline prices to hook customers, then once the Treloar said that did not appear to qualify as
customers in at one price and sell at another. customer has expressed interest the telesales reasonable.
The practice was once a big problem on Teletext staff call up with a different price. Sunsave.com director Lesley Etienne said the
as advertisers felt forced to post unrealistically One issue raised with Abta is that costs such as company had been in contact with Trading Stan-
low prices in order to appear high up on the page luggage are not included – despite being regarded dards and was changing its website as a result.
and get customer attention. as a non-optional extra by many people. Booking Abta said it had received complaints about
Phone sales staff would then reveal that the fees or card charges are also often excluded. luggage charges not being included in prices by
price advertised was no longer available but The issue echoes a previous row over no-frills On The Beach. A spokeswoman for Abta said the
attempt to sell at a more expensive price. airlines advertising prices excluding tax, which led company had now put a message on its website
The concern is that some websites are using to intervention by the Office of Fair Trading. explaining that policy, and Abta was working with
it to ensure customers were clear.
04 18.09.2009
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