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Singapore to crack down on misleading OTA pricing
Singapore’s competition watchdog has taken aim at the questionable tactics of online travel firms and has proposed a set of guidelines that meets the requirements of Singapore’s consumer protection act.
The Competition and Consumer Commission of Singapore (CCCS) has just concluded a nine-month study of the online travel booking market which highlights several issues over misleading practices.
It called out the practice of ‘drip pricing’ when online sites do not disclose all mandatory or optional charges upfront, such as taxes, insurance and payment processing fees.
It also criticised OTAs’ policy of adding optional extras as a default which are often missed and go unchecked by consumers.
CCCS also took issue with strike-through price comparisons which give the sometimes misleading impression a price has been discounted.
Under recommendations proposed, the agency warns online travel platforms against making false or misleading claims to apply pressure for a quick sale.
This includes giving misleading information over limited availability.
All fees should be included in the total headline price, the agency said.
The guidelines apply to online and offline providers and a period of public feedback until October 21 is seeking comments about the guidelines from consumers.
The CCCS study looked at the practises of dozens of online travel companies, not just the big players like Booking.com and Expedia.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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