The European Consumer Centres Network (ECC-Net) is an EU-wide network that provides consumers with information about their rights when shopping across borders and helps consumers to seek redress in relation to disputes which have arisen due to a cross-border transaction.
‘Online holiday booking, is the initial price the final price?’ is the title of a research project conducted by the network to establish whether the initial price advertised when booking a holiday corresponded with the final one which consumers pay.
Online shopping offers consumers the possibility to benefit from the internal market as they can easily compare prices, products and services of different sellers from different countries. However, consumers are still facing difficulties when shopping online, especially when it comes to the final price being paid.
EU law ensures that consumers have access to all the relevant information, including transparency for all prices of air services. It also states that the price of any supplementary service should be stated in a clear, unambiguous and transparent way at the beginning of each booking process.
The information provided should include all details an average consumer would need to make an informed decision: price inclusive of taxes, manner by which the price is calculated and all additional freight, delivery or postal charges which should be visible to the consumers.
The research carried out by the ECC Net tried to find out whether the price varies during the reservation process and until the definitive booking of the service or whether the price varies after the definitive booking but before the use of the booked holiday service.
It had been concluded that the risk to encounter a price increase is higher when booking a low-cost flight, as well as when booking via an online platform. Furthermore, in the majority of the cases, management fees, credit card fees and fees for checking-in passengers led to a price increase in comparison to the initial price.
There are a number of points a consumer should keep in mind when booking an online holiday:
1. Are taxes included? Prices should be indicated inclusive of all mandatory fees and taxes in a clear way at the beginning of the process.
Online shopping offers consumers the possibility to benefit from the internal market
2. What ‘extra’ services are needed? When one would like to add extra services (e.g. a checked-in luggage), s/he should verify whether these services are included. If not, one should look at the list of ‘extras’ in order to see the full extra price of the service required.
3. Cancellation: one should always check the cancellation policy first. It’s best to avoid booking before one is sure that the data entered is correct, to avoid incurring extra charges to make amendments.
4. Pre-set options: before booking, one should make sure that options such as ‘flexible-dates-function’ is not pre-set.
5. Insurance: when getting insurance, one should first verify the terms and conditions of the policies to be signed.
6. Read carefully: one should always check for pre-checked boxes. If a consumer comes across such practice, s/he should complain to the ECC.
7. Proof: when booking online, it is best to take screenshots to present it as proof if a claim arises.
8. Double check: before pressing the final button, double check all the information entered. Afterwards, to change something might incur you extra fees.
9. Check the e-mail provided: booking confirmations are usually sent to consumers on the e-mail address they have provided. It is important to make sure that such e-mails are received.
This project has showed that a lot of consumers complained about an unexpected price increase of online booking services. Out of 539 cases, 365 cases concerned unexpected price increases. In most cases, management fees, credit card fees and fees for checking-in passengers led to a price increase in comparison to the ‘initial price’.
The full version of the report can be downloaded from the ECC Malta website, through the following link: http://eccnetmalta.gov.mt/mt/publikazzjonijiet/reports/other-reports/ together with other information documents with useful information about this topic.
This information has been provided by the European Consumer Centre Malta. The ECC-Net is a European network consisting of 30 European Consumer Centres, representing all EU Member States and also Iceland and Norway. The network is co-funded by the European Commission and EU Member States. In addition to helping consumers in case of a complaint or dispute, members of the ECC-Net engage in joint projects to investigate specific business sectors. ECC Malta is hosted by the Malta Competition and Consumer Affairs Authority (MCCAA).
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org.mt