Multiple major hotel chains including Travelodge, Hilton, and Accor have been accused of engaging in “price baiting” tactics by a recent investigation, potentially misleading consumers with offers of cheap rooms that are not widely available, a study by Which? suggests.
The study revealed that these hotel chains have been offering enticing deals on rooms, but in reality, only a limited number of rooms are available at the advertised prices. While this practice may disappoint customers, it can still drive sales for the hoteliers as consumers are more likely to make a reservation even if they cannot find the promoted deal, to avoid wasting the time and effort already spent.
For example, Travelodge ran a promotion advertising rooms in London “from £55” and outside of the capital “from £39”, creating a sense of urgency with messages like “Book your room now! Book early so you don’t miss out! Rooms from £55. Book online today. Book for tonight.” However, Which? researchers found that only a few rooms were actually available at the advertised prices after analyzing thousands of prices across 138 Travelodge hotels over a six-month period.
In another instance, Accor promoted a 15% off exclusive offer for its French hotels on Facebook, advertising rates for a Mercure property near the Eiffel Tower “from £129” a night for a two-night stay. But when Which? checked availability on the final day of the sale, no nights were available at that price over the entire 64-day travel period, with the majority of nights costing well above £180.
Similarly, Hilton was found to continue promoting some hotels at a discounted rate even after they had sold out of rooms. While some hotels had good availability, others like Hilton’s Grand Hotel des Sablettes Plage, advertised “from £133”, had no nights available at the promotional rate for almost three weeks.
Which? has raised concerns about these misleading pricing practices and has shared its findings with the Advertising Standards Authority (ASA). The consumer rights group is calling for a review of trading standards to ensure better enforcement of consumer protection laws.
Responding to the allegations, Travelodge stated that it complies with ASA guidelines and is confident in its advertising. The hotel chain emphasized that while room availability may vary based on booking patterns and local circumstances, their pricing messaging adheres to ASA requirements and they remain transparent with customers about costs.
Naomi Leach, Deputy Editor at Which? Travel, condemned the misleading sales tactics employed by businesses, stating that consumers are often lured in by seemingly attractive deals only to find it nearly impossible to book at the advertised rates. Leach emphasised the need for stronger enforcement of consumer laws to hold companies accountable for such deceptive practices.
In conclusion, the issue of “price baiting” in the hotel industry highlights the importance of transparency and honesty in advertising to protect consumers from falling prey to misleading promotions. As the investigation unfolds, consumers are encouraged to remain vigilant and cautious when booking hotel accommodations to ensure they are getting fair and accurate pricing information.