Several major hotel chains have come under scrutiny for what appears to be a misleading pricing strategy known as “bait pricing,” according to a recent study. This practice involves offering cheap room rates to entice customers, but only making a limited number of rooms available at that price. Consumer group Which? has raised concerns about this tactic, stating that while it may disappoint customers, it can still boost sales for hoteliers. The study found that consumers were more likely to make a booking even if they couldn’t find the advertised deal in order to avoid wasting the time and effort they had already invested.
One example cited in the study was a promotion by Travelodge that advertised hotel rooms in London “from £55” and outside of London “from £39.” Despite the enticing offers, researchers found that only a small percentage of the rooms were actually available at the advertised prices. For instance, in one London location, only three nights over a six-month period were available at the advertised price of £55, with the majority of nights costing well over £100. While Travelodge stated that its adverts complied with Advertising Standards Authority guidelines and that room availability could be affected by booking patterns, Which? researchers found similar discrepancies with other hotel chains as well.
Accor, another hotel chain, ran a promotion offering rates “from £129” at one of its properties near the Eiffel Tower. However, upon closer inspection, Which? discovered that there were no nights available at this price over the entire 64-day travel period, with most nights costing significantly more. Similarly, Hilton continued to promote hotels at a 20% discount even after the rooms had sold out. This pricing practice has raised concerns among consumer advocates, leading to calls for a review of trading standards to ensure compliance with consumer protection laws.
In response to the study findings, a Travelodge spokesperson reiterated that their pricing and advertisements were in line with ASA guidelines and that they remained transparent with customers about costs. The spokesperson also mentioned that room availability could be influenced by various factors such as customer booking patterns. Consumer rights advocates have expressed dismay at what they see as misleading pricing practices in the hospitality industry. They argue that stronger enforcement of consumer protection laws is necessary to prevent businesses from taking advantage of customers with misleading offers.
In conclusion, the issue of “bait pricing” in the hotel industry has come under scrutiny following a study that revealed discrepancies between advertised prices and actual room availability. Consumer groups have called for stricter enforcement of regulations to protect customers from potentially misleading offers. As the debate continues, hotel chains will likely face increased scrutiny over their pricing practices and transparency with consumers.