Money Wellness
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calendar icon22 Nov 2024

Watch out for misleading hotel price ads

Have you found a hotel room at an unbelievably low price? Be careful, it might not be as good as it sounds.   

According to research by the consumer rights champion Which?, some hotel brands are using ‘bait pricing’ tactics to mislead customers and boost sales.  

What is ‘bait pricing’  

Bait pricing is when a company advertises a low price to attract customers, but when you try to book or buy something, the deal isn’t available or the price is higher.  

The goal is to get you to book anyway. Which? says this trick can disappoint customers while helping companies make more money, since many will still book even if the price isn’t what they expected. 

But bait pricing is actually illegal under consumer law and can break advertising rules.  

Companies must keep track of their stock and offers before updating or removing ads once they sell out at the advertised price. 

Which?’s research found that companies like Travelodge and others advertise rooms at low rates, but these deals are often unavailable.  

During July, for example, Travelodge advertised stays in King’s Cross in London “from £55”, but when Which? checked availability for the six months from that date, it only found three nights available at that price – and all were Sundays in January.  

Some places were better at showing advertised deals that were still on offer, like Travelodge Burton, where 66% of nights the watchdog checked were £39 or below. 

The ‘urgency’ trick 

Which? also warns how hotels like Travelodge often use urgent language like ‘Book your room now!’ or ‘Book early so you don’t miss out!’ to make you feel like you need to hurry.  

But when you check, you may find that the advertised price is only available on certain dates, like a few nights in January, or even not at all.  

In response to Which?’s findings, Travelodge says its ads follow the rules. It claims it’s clear about the limited availability of rooms and that available prices should be spread out fairly across the advertised period.  

How to avoid bait pricing  

Before you book a hotel room or take advantage of any ‘great deal, here’s what you can do to avoid being drawn into a misleading offer:  

  • Do your research by comparing prices on different websites to see what’s on offer elsewhere. 

  • Contact the hotel/retailer directly to confirm availability and costs before booking. 

  • Check reviews to see if other people had similar issues with misleading prices. 

  • Check the terms to look for any small print or restrictions that could affect the deal. 

  • Be cautious of urgency, if an offer feels rushed or too good to be true, take a moment to double-check the details. 

Whether you’re booking a hotel room, looking for love, shopping or applying for a job online, there’s always a risk that a deal isn’t what it claims to be.  

Check out our guide on how to outsmart online scammers. 

 

Avatar of Gabrielle Pickard Whitehead

Gabrielle Pickard Whitehead

Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.