More transparency on hotel booking websites?

The UK's Competition & Markets Authority (CMA) announced yesterday that it has finalised its investigation into commercial practices of hotel booking websites (Hotel booking sites to make major changes after CMA probe). Under investigation were such well-known online companies as: Expedia, Booking.com, Agoda, Hotels.com, ebookers and trivago. Concerns that were raised and had been investigated pertained to a possibility of pressure selling, misleading discount claims, hidden charges and a suspicion that commission that these websites receive may impact the order, in which hotels are being shown on their websites. Overall, various online commercial practices might have misled consumers to believe that a certain hotel accommodation was either more popular or cheaper than the reality warranted. It was, therefore, questioned whether these companies might have been infringing the Consumer Protection from Unfair Trading Regulations 2008, which implemented the Unfair Commercial Practices Directive in the UK.

Since all of the above-mentioned companies co-operated with the CMA and agreed to voluntary undertakings, this means that the CMA did not proceed with its findings of any breaches of consumer law. Instead, the voluntary undertaking taken by these companies signifies their commitment to ensure in the future that certain principles will be observed, without admitting any fault in past dealings. All the promised changes should be made before 1 September 2019 and the CMA will expect these actions to be taken also by other websites in the same sector, who were not under investigation at the moment. The agreed on principles are as follows:

• search results: clarifying whether the order of results is influenced by the amount of commission a hotel pays to the website;
• pressure selling: currently, when using hotel booking websites, we often see information that other consumers are looking at the same hotel as we are and that there is only 1 room left, as well as showing us hotel accommodation that has already been sold out. This tactic may pressure consumers to rush with making a transactional choice, creating a scarcity condition. It can additionally be misleading, if other consumers are looking at the same hotel indeed but at renting rooms in it on other dates. This practice should now cease;
• discount claims: ensuring that all discount claims are based on non-misleading criteria and are actually available. This prevents hotel booking websites from offering 'discounts' based on comparing the offered price for a given room to the price of a more luxurious room in the same accommodation, or to a price for the same room but in high season;
• hidden charges: showing all compulsory charges up front, incl. taxes and fees.

The question remains whether we can expect these hotel booking websites to change their online practices more generally, not just for the UK consumers. This is something to pay attention to and re-check after September 2019.

Press digest

Telecommunication

The European Commission announces not to further regulate fixed telephone lines, since the market moved towards mobile and online telecommunication. (Europe says goodbye to fixed line regulation, hello to mobile era)

Tobacco Products Directive

UK e-cigarette manufacturer, Totally Wicked, challenges the validity of art. 20 of the Tobacco Products Directive at the CJEU, claiming that e-cigarettes should not be regulated as "tobacco related products" if they don't contain tobacco. (E-cig manufacturer wins right to challenge Brussels in EU courts; Totally Wicked vs. the EU's tobacco directive; First e-cig TV adverts from next month)

EU Data Protection and ePrivacy rules

Worries are being expressed about strengthening existing data protection rules even when businesses do not seem to be able to hold to currently existing ones (EU set to strengthen data protection laws). Data Protection Authorities across the EU are currently stepping up enforcement of the compliance with the existing EU data protection rules, by conducting a widespread cookie sweep (Are you ready? The EU "Cookie Sweep" is upon us). Other sources report widespread non-compliance of cloud-based storage service providers with the existing EU data protection rules (Most cloud apps flout EU data protection rules - study).

Tourism sector

TUI Travel argues in the UK for more support to be given to the reform of the Package Travel Directive and the Regulation No 261/2004 on air passenger rights. (TUI Travel calls on UK government to support the travel and tourism sector at home and abroad)

Competition

European booksellers plead with the European Commission and BEUC to set up investigation into the monopoly position of Amazon in the online book market, which harms European consumers by depriving them of a rich and diversified online book offering. (Booksellers raise Amazon monopoly concerns with European Commission)

Health claims

The new rules on food labelling (EU Regulation 1169/2011 on food information to consumers) are to enter into force as of December 2014 (nutrition information as of December 2016). Especially the sport nutrition sector may have to invest time and money to adjust the labels of their products to the new rules. While this regulation forces producers to be very specific in listing ingredients of their products, it may be even more difficult for the producers to justify placement of easy claims on how certain products may boost energy etc. (which are also regulated by Regulation 1924/2006). (Claim, set and match)

Consumer behaviour

Two new survey results have been published showing us growing trends of consumer online shopping habits. (UK leads European online shopping; Northern European web shoppers spent €1,780 each in 2013) In the meantime, Facebook sets up a new division - Facebook IQ - to try to understand consumer behaviour better... (Facebook forms new unit to study consumer behaviour).

Green paper on the Safety of Tourism Accommodation Services

The European Commission opened yesterday a public consultation with regard to the consumer safety when using tourism accommodation. While it is up to the Member States to assure the safety of tourism accommodation services, the European Commission recognizes that due to the often cross-border character of these services some quality and safety measures' standardisation could be needed. Even if as the result of the consultation it is decided that the measures used in different Member States do not need to be harmonised despite their variety, it may be necessary to ensure better information provision to tourists, so that they know what safety standards to expect in which countries and that their protection is adequate across Europe. The consultation is open until 30 November 2014 and the questionnaire may be filled by anyone interested in this matter on this website. The Green Paper is available here. We will report on the results of this consultation and any further steps taken in this legislative area next year.

Tourism business to the rescue

Summer holidays are almost behind us and accordingly tomorrow is the last day for completing a European Commission's survey regarding the needs of elderly, disabled and otherwise requiring special help while traveling (e.g., because they travel with small children) consumers. The survey is anonymous and its results are supposed to help the European Commission to draft new policy with respect to accessible tourism. The survey may be completed either by travelers who have special accessibility needs or by tourism businesses about their experience with accommodating such travelers.

Eurotravel

Recently published data of the Flash Eurobarometer 370 presents current attitudes of Europeans towards tourism. The main findings were as follows (see also: Tourism's robust and resilient performance expected to continue in 2013):

• 71% of Europeans travelled for work or private reasons in 2012. (...) a majority of respondents who travelled are aged 15-39, or have a high level of education, or live in a large town.
• Europeans who did not travel in 2012 mostly cited financial reasons for not taking a holiday (46%). (...) Respondents who did not travel in 2012 are more likely to be aged 55+, are manual workers, unemployed, or live in a single person household.
• 88% of EU respondents who travelled for a personal holiday of at least four nights went somewhere within the EU.
• Spending time in the sunshine or at the beach was the main reason for a holiday of at least four consecutive nights in 2012 (40%), closely followed by visiting family, friends or relatives (36%).
• Spain was the most popular destination for EU holiday makers in 2012 (10%), followed by Italy and France (both 8%). Croatia was also among the preferred destinations in 2012 (3%).
• A large proportion of EU respondents (58%) spent their holidays in their own country, a similar result to that of the 2011 survey (56%). Domestic holidays were most common in Greece (87%), Italy (80%), Bulgaria (79%) Spain (73%), and Croatia (74%).
• Staying in paid accommodation or staying with friends or relatives also increased in popularity compared to 2011.
• 92% of EU respondents were satisfied with the quality of accommodation in 2012. 31% of respondents consider the quality of accommodation as main factor for a decision to return to the same holiday destination.
• Most EU citizens were satisfied with the general level of prices (83%), which represents another key reason to go back to the same holiday destination.

If we took a holiday...

A week ago a new Eurobarometer survey on tourism was published (Tourism to become economic driver in 2012). It shows quite interesting statistics as to the EU consumers' tourist habits:

- 72% of EU citizens travelled in 2011: Spain was the most visited country

- over 80% of EU citizens expected to travel in 2012

- majority of EU citizens prefers to arrange their holidays by themselves: 53% of Europeans booked their holidays via internet

- 49% of EU travellers in 2011 organised the various elements of their trip separately, instead of booking one package

- word of mouth recommendations of friends and family were relied on by 52% of EU travellers

- 40% relied on internet websites recommendations

- 78% of EU travellers chose car and motorbike as means of transportation (in 2010 - only 44%)

- 46% travelled by plane (in 2010 - 39%)

- 54% of EU travellers going on short trips and 60% spending at least 4 nights away - used hotels or rented accommodations

- 48% of EU travellers looked for 'rest and recreation' (next objectives:  sun and beach; visiting family and friends)

- over 50% of EU citizens would go back to the same place for its natural beauty

- over 90% of EU citizens were satisfied with their travelling choices