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The Competition and Markets Authority are looking into hotel booking sites, with concerns that customers are being pressured, misled and prevented from finding the best deals.
The UK watchdog will look at sites such as Expedia, Booking.com and Trivago to determine if they are using pressure techniques, or whether the sites are receiving commision from some hotels.
Andrea Coscelli, chief executive of the CMA said: “Sites need to give their customers information that is clear, accurate and presented in a way that enables people to choose the best deal for them,”
“But we are concerned that this is not happening and that the information on sites may in fact be making it difficult for people to make the right choice.
“That’s why we have started our investigation into this sector – to get to the bottom of these issues, see whether sites are breaking consumer law and make sure they help, not hinder, people searching for their next hotel room.”
On BBC’s Today Program, Nisha Arora, a senior director at the CMA said: “We are concerned about the clarity and accuracy of these sites. Rather than helping consumers they may actually be making it more difficult for them.”
“When you put in your criteria – which room you want, when you want to stay – they are listed in a certain order. This is not just influenced by consumer preference but by commission – commercial considerations – and consumers might not be aware of this.”
When looking at hotel comparison websites, the watchdog will consider how clear information on extra charges is made, how search results are ranked and how the website displays how many rooms are left.
This investigation by the competition watchdog is part of a year look probe into comparison websites. So far, the CMA has concluded that whilst price comparison websites might find you a good deal for car insurance, it is much less effective with broadband.
The CMA has written to different companies in the market asking for information about their practices and wants to hear from customer experiences.