The UK’s Hidden-Fee Crackdown Is Coming for Travel

Skift Take

An investigation isn't a verdict, but the UK regulator no longer needs a court to reach one, and it can fine a company up to 10% of global turnover once it does. The travel industry will be watching very closely.

An investigation has been launched into two of the biggest names in British travel. The UK's Competition and Markets Authority (CMA) will examine if Virgin Atlantic and Trainline failed to show customers the full price of a booking before they paid for it.

The CMA opened formal investigations into both companies over a practice known as drip pricing, in which mandatory fees are left out of the advertised price and only appear later in the booking process. The practice is illegal under UK consumer law and can result in large fines or compensation orders if it finds a company has broken the rules.

The CMA's case against Virgin Atlantic centers on package trips sold through its Virgin Atlantic Holidays division. The regulator will establish if mandatory resort fees and local taxes were included in the upfront price shown to customers. It notes that these charges can add hundreds of pounds to the cost of a trip.

A spokesperson for Virgin Atlantic Holidays

Reporting originally appeared via Skift Travel News. Read the full source for additional context.