By Darren Cronian on Saturday, February 14th, 2009

I wonder if because of the recession we are starting to see that false advertising is on the increase as travel companies fight over consumers. I have a few examples of the types of false advertising that have come to my attention recently.

False advertising is on the increase in travel

True cost please

One ‘rant’ this week was from a consumer who found that they have got to the end of the booking process, and was just about to enter their credit card details when they noticed that the price has gone up by nearly £200 from the page before.

No mention of what the extra charges are for, no warning, but I am assuming it’s because of supplements or taxes that have been added on at the end of the booking process. Many of us have a tight budget so to find that the price is an extra £200 more is very poor.

False prices to draw consumers in

It seems that some travel companies are still advertising prices on their homepage to draw you in but it’s only when you get to booking that you find the price drastically increases. Surely companies should be reprimanded like the airlines when falsely advertising holidays.

False green claims

Another form of false advertising that I have come into contact with is relating to so called environmentally friendly hotels and eco-lodges that are anything but the environmentally friendly that they’re advertised as.

Therefore, taking advantage of the growing number of environment conscious consumers.

Falsely advertised hotel features

A consumer emailed me this week to rant at a hotel in Athens that advertised on its website as having a hot tub. He booked the hotel because his wife has back problems and thought it would be good to soak after a day sightseeing. The hot tub was anything but hot.

Time for companies to be reprimanded

I know travel companies are fighting over consumers but it’s time that the Office of Fair Trading and the Advertising Standards Authority took a firmer standing with false advertising in travel. I think it’s rife, and something needs to be done before it gets out of control.

I am interested to hear readers who have come into contact with false advertising recently.


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14 responses to “False advertising is on the increase in travel”

Heather | 14 February, 2009 at 11:59 am

Vacation rental advertising can be rife with misleading advertising since private listings are not bound by regulations regarding misrepresentation, that travel agents are. Renters have to learn to read between the lines. ‘Great swimming in the lake’ can mean ‘Wade through 30 feet of trailing weed and mud to get to clear water for swimming’; ‘Rustic cottage’ may sound romantic but usually means ‘Indoor plumbing is dodgy and the spider on the bathroom wall has been dead for 10 years’. Owners can be selective with their descriptions too, so what is missing from the listing is as important as what is stated.

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Kevin May | 14 February, 2009 at 12:00 pm

@darren

happy valentine’s day!! haha.

anyway, two things with your post:

1) The Office of Fair Trading does not regulate advertising. In the UK it is the Advertising Standards Authority (ASA), which releases its weekly reports every Wednesday. The OFT exists to oversee the business practices of organisations, not their marketing.

2) Your headline is misleading and I wonder if it was written just to draw people in :-) At this stage in the economic crisis there is no data to suggest that false advertising is on the increase.

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Darren Cronian | 14 February, 2009 at 12:06 pm

@ Kevin

Ok yes, err from an advertising perspective I am incorrect, but, is the OFT not responsible for companies who don’t trade fairly? So, if I booked a holiday and it said on the homepage it was £299 but really it was £499 then that’s a case for OFT surely?

As for the headline, I would never think about creating such a headline to attract people in or to comment ;)

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Heather | 14 February, 2009 at 12:10 pm

Doesn’t UK travel legislation regulate advertising? The Ontario Travel Act here in Canada does just that and would cover the example of false pricing you mention here.

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Darren Cronian | 14 February, 2009 at 12:16 pm

@ Heather

Yes as Kevin mentioned we have the ASA, but I doubt that they would deal with hotels or villa owners who falsify information. I think it’s more to do with tv, magazine, online advertising, but I could be wrong, and Kevin will correct me I’m sure.

I’ve slightly amended the post to add in the ASA. Thanks Kevin.

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Kevin May | 14 February, 2009 at 12:22 pm

@heather – all UK advertising, regardless of the sector, is regulated by the Advertising Standards Authority.

@darren – we’ll agree to disagree over whether to use a headline for those reasons is damaging to a brand eh. :-)

The ASA covers any kind of ‘push’ marketing – i.e. advertising (press, outdoor, online, direct, email etc). The OFT intervenes if, as you say, a company is suggesting in its literature or behaviour (including online) if its services or products are not what they appear, like prices of products. However, a discreet asterisk (*) next to a price (which leads to a page of additional costs), or the word ‘from’ is enough to get around regulators.

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Darren Cronian | 14 February, 2009 at 12:45 pm

@ Kevin

Maybe it is damaging, guess you have to push the boundaries sometimes to see what works and what doesn’t. I’m sure I am not the only blogger to do that. As for the information on the ASA, thanks for the information. If you take First Choice as an example, there’s some links to destinations with prices, on the right hand side at the bottom, no mention of ‘from’ in them. So you think your searching for holidays for holidays in Costa Brava for £120 but realistically your probably not.

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Nick | 14 February, 2009 at 1:50 pm

Darren/Kevin etc.

In the UK no matter if it is an advert or misleading prices or anything else, just contact local trading standards, (trust me I have had a few calls from them to check out the rules, as even they can not keep on top of it). Our local trading standards are very helpful and having been on both ends of there service professional as well. After all isn’t that what we pay our taxes for?

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Mark H | 15 February, 2009 at 12:57 am

Each country is different but there needs to be some rules about honesty in pricing. In Australia, airlines must advertise the full price of the airfare incl taxes/surcharges, though even with this they can add luggage charges, credit card taxes and other optionals.

And on the green-washing topic, sadly companies that have genuine credentials are now being ignored as most people assume that nearly all make this claim and hence it doesn’t hold much value anymore.

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Mark Sukhija | 15 February, 2009 at 7:02 pm

Darren,

Interesting post. I have a feeling many will attempt “misleading” advertising over the downturn.

The best advice is, as always, to read the small print and get the details before you sign anything.

Of course, improved standards from the ASA are necessary but essentially meaningless without proper enforcement – which is quite another thing and usually very time consuming.

This is where, I think, the internet is a very useful tool to consumers. The internet is useful not only in terms of alerting cosumers to specific instances of misleading advertising but also more general “tricks of the trade.” A small amount of research either online or offline (shopping at more than one travel agent or friends recomendations for example) can be equally useful tools in (a) exposing mislead ads and more importantly (b) finding reputable players in the first place.

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Nick | 16 February, 2009 at 10:09 am

Darren

The thing to remember with the UK is holidays are done on most websites by screen scraping. We had a chat about how old travel tech is and that it does not work well with the web. So each night companies collect the data and post this information, so when you log in at 7 am it can already be 5-9 hours out, just getting worse though the day. To show you how it works we had a holiday to Malta we placed in our window one morning for 249.00, a customer came in at lunch time and the price was 229.00 so went to tell his wife and came back 15 minutes later to find the price was 299.00, all this in less than 3 hours, so think what 12 hours does.

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Darren Cronian | 16 February, 2009 at 12:37 pm

@ Nick

Good point – maybe what is needed is technology needs improving. They have the travel technology show, and people rap on about how technology advanced the travel industry is but in reality I cannot believe that travel agents still use those teletext / ceefax type screens when searching for holidays.

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Murray Harrold | 17 February, 2009 at 9:42 pm

Oh! This old chestnut! We have had this one washing around the trade ever since Thommy Cook was a boy. It is, though, a valid argument nonetheless. Given that you have (potentially) the whole world chasing, say, 4 seats on a holiday, keeping up is quite hard. The view taken is that “one shall not take the you-know-what” You try as best you can to keep offers up to date and valid and on balance, the trade does manage this reasonably well (IMHO) No-one blatantly puts something silly in the window (or on the web) any more. Mind you, I have seen a holiday price change whilst clients have been debating which one to take…. !

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Lisa Spurlock | 24 February, 2009 at 1:45 pm

Just wanted to chime in two cents on “False Green Claims”. I’m not sure where you were going on this, since it was given such a short portion of your article. One hears quite a bit about “green washing’” nowadays. Some hotels are more green than others and there are many different green things that hotels can do to be more environmentally friendly. Even if they just switch to energy saving bulbs, recycle some of their trash, change linens only on request – that’s a good start as those three activities save energy, keep garbage out of landfills, and saves water. Hotels are getting greener all the time and realizing that they save money too!

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