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Flightmapping > News > August 04 > Flights Pricing Clampdown

Clampdown On Unfair Flights Pricing

Source: Trading Standards Institute

A new clampdown on current illegal practices is being launched by major UK regulators against those selling flights on the internet who fail to include the mandatory fees such as airport taxes, insurance levies, credit card charges and handling fees, in the prices they quote for flights.

For example a website on Friday 30 July, stated, '1 million seats from 99p', after selecting one at the advertised 99p, you find the final price to the customer (5 screens later!) is £63.85!

Website sales of flights now account for a fifth of the UK holiday market. This year the Spanish Institute of Tourist Studies reported that 4 million of the total of 10.6 million holidaymakers who flew to Spain during 2003 travelled with 'no-frills' airlines, which shows why this guidance is needed more than ever as there are increasing numbers of airlines coming into the market following the enlargement of the EU.

The Trading Standards Institute (TSI), Local Authorities Coordinators of Regulatory Services (LACORS), the Advertising Standards Authority (ASA) together with the Air Transport Users Council (AUC) have been joined by the Office of Fair Trading (OFT), to produce a new guidance paper setting out the legal requirements for all sales of flights on websites. This guidance is launched today on the LACORS website www.lacors.gov.uk .

The Association of British Travel Agents (ABTA), the Passenger Shipping Association (PSA), and Federation of Tour Operators (FTO) have all expressed concerns that the playing field is no longer level because many web-based flight sales were advertising lower prices - and then customers faced top-up bills for the mandatory extras.

'Travel industry reports drew a very disturbing picture of the lack of transparency for consumers in the pricing of flights on the internet,' said Bruce Treloar, the Trading Standards Institute's Lead Officer for travel.

'There is a very clear need to ensure the whole industry is subject to the same regulatory requirements - so consumers can compare prices easily. ABTA members are already required to include all non-optional charges in their prices or be penalised under the ABTA code of conduct.'

Derek Allen, Executive Director of LACORS said, 'This guidance will help ensure more consistency across the trade and will ultimately provide the public with more accurate price information to ensure compliance with legislation.'

Bill Gibbons, Director of the Passenger Shipping Association said, 'We welcome competition, but it should be fair. The problem we face is that low cost airlines that flout the law are moving targets, by the time a complaint is made and enforcement is taken the advert has run its course and the companies are onto the next promotion.'

The public should be able to see the actual cost of a flight before they purchase a ticket and this guidance will mean correct charges being displayed on airline websites.

Consumers should be provided with all the facts they need to make a price comparison before they get to the checkout. Prices should be clear and all charges should be included in the quoted fare.

 

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