New research from Which? has found that some major hotel chains are using “bait pricing” to reel in customers – this is where a product is advertised at an unrealistically low price
A probe has thrown the spotlight on how hotel companies are luring in would-be guests with tempting adverts promising cut-price stays, but leaving them frustrated when they discover there’s hardly any availability at the tantalising rates.
Diving deep into the world of online holiday deals, Which? has uncovered some big-name hoteliers engaging in what’s known as “bait pricing”, which involves dangling a room at an implausibly low rate. However, these bargain rooms are either scarce, failing to meet customer demand, or non-existent in the worst scenarios.
This tactic works by drawing potential customers in with one price, who then may feel more inclined to book just to make their prior search efforts count, despite the original price not being available.
In one instance pointed out by Which? , Travelodge was promoting rooms in London ‘from £55’ and other locations ‘from £39.’ It also featured the term ‘Book Your Room Now! Book Early So You Don’t Miss Out! Rooms from £55. Book Online Today. Book for Tonight’.
Which? researchers have been busy verifying the claims made in Travelodge adverts by collecting thousands of prices for 138 participating hotels over a six-month period. They wanted to see how many rooms were actually available at the advertised price.
They found that 15 hotels had less than 10% of nights available at the advertised price. There was no indication on the adverts about this limited availability. In July, Travelodge was advertising stays in King’s Cross in London ‘from £55’. However, when Which? checked availability for the six months from that date, it only found three nights available for £55 (1.7%). All three nights were Sundays in January – a time when hotels are likely struggling to fill rooms.
Anyone seeing that advert in real time and expecting to book that rate for that month, or even a few months’ time, would be bitterly disappointed. A slightly higher number of £55 nights were available at the Travelodge London King’s Cross Royal Scot down the road, but still only eight per cent of those Which? checked. The majority of nights (64%) cost upwards of £100, and one example Which? found was £220.
In some locations, there was a reasonable chance of getting the deal – two thirds (66%) of nights Which? checked were £39 or below, as advertised, at Travelodge Burton, for example. Under the guidance of the Advertising Standards Authority (ASA) on travel marketing, retailers are required to clearly state if stock is limited and ensure product availability is “spread evenly across the advertised travel period”.
In July and August this year, Accor promoted a 15% off member exclusive offer for its French hotels on Facebook. One of the hotels included in the promotion – a Mercure property near the Eiffel Tower – appeared to be a steal with nightly rates advertised ‘from £129’, based on a two-night stay.
However, when the prices were checked on the last day of the sale, there were no nights available at this price over the entire 64-day travel period. The cheapest room Which? found was priced at £142, but the majority of nights (62%) cost well over £180, peaking at £252.
According to the CAP code rules, the adverts should have been withdrawn if the promotional rate rooms were sold out.
Naomi Leach, deputy editor of Which? Travel, said: “All too often we see holidaymakers misled by too-good-to-be-true sales, where hotels reel consumers in with the promise of a great deal, only for it to be almost impossible to make a booking at the bargain rate.
“It is completely unacceptable that holiday companies feel they can push the boundaries, and it’s clear that stronger enforcement of consumer law is needed to ensure businesses know that misleading pricing will not be tolerated.”
Travelodge defended its position, with a spokesperson stating: “Travelodge fully complies with Advertising Standards Authority (ASA) guidelines and is confident in its data, advertisements and offers. We have reviewed this advertisement in detail and the number of rooms available at the low price of £55 is well over the ASA minimum requirement.
“While room availability at individual hotels is affected by customer booking patterns and local circumstances, our price messaging fully complies with ASA requirements and we remain transparent with our customers about costs, supported by our Best Price Finder* tool on our website.
“As the UK’s first budget hotel brand, Travelodge provides great value through competitive room prices, promotions and discounts. Our pricing and advertisements are regularly updated to ensure transparency and accuracy.”
The company also highlighted its ‘Best Price Finder’ tool on www.travelodge.co.uk as a way for customers to find the best prices for their desired locations and budgets.
Accor has been contacted for comment.