Advertisements from four prominent British hotel and travel companies have been banned for presenting potentially deceptive minimum prices for accommodations.
The Advertising Standards Authority (ASA) has upheld complaints regarding the use of attention-grabbing “from” prices by the Hilton hotel group, Travelodge, Booking.com, and Accor.
The watchdog determined that only a limited number of rooms were actually available for booking at the advertised rates, leading to the conclusion that the advertisements overstated the offered deals.
This practice was deemed unfair to consumers seeking legitimate discounts or aiming to make informed decisions about their booking choices.
Emily Henwood, operations manager at the ASA, stated, “Advertised prices must reflect actual availability. If only a few rooms are offered at the displayed price, or if it applies only to a specific date, this must be clearly communicated to avoid misleading the public.”
“Consumers should have confidence in the prices presented in advertisements, and these rulings demonstrate our commitment to taking action when regulations are violated,” Henwood added.
The ASA employed AI technology to identify the misleading advertisements as part of a broader investigation into the accuracy of advertised hotel prices.
The Hilton hotel group faced censure for two specific advertisements, one stating “Hampton by Hilton Hamilton Park From £68” and another promoting stays in Newcastle starting at £59.
The ASA requested substantiation for these claims, and Hilton provided evidence of room availability at the advertised rates on the dates the advertisements were viewed.
However, the ASA concluded that Hilton had exaggerated the availability of the advertised rooms, potentially misleading consumers. The chain was ordered to cease publishing the advertisements and cautioned to ensure that future price claims accurately reflect deals available for “a significant proportion of rooms.”
A Hilton spokesperson attributed the issue to a “glitch” with its ad provider in April, resulting in the incorrect display of two advertisements.
“Although rooms remained bookable for guests at the advertised rates, we are working to ensure that we can better evidence this in future in a way that is aligned to ASA reporting requirements,” they said.
Hilton emphasized its commitment to transparency in advertising and pricing.
Travelodge had two advertisements banned – one offering rooms in Nottingham Riverside “from £25” and the other rooms in Swansea “from £21.”
The ASA found that the advertised prices were only available for a single night’s stay, warning Travelodge to ensure deals are available “across a range of dates” in the future.
A Travelodge spokesperson stated the company’s recognition of the need for clarity and transparency in pricing and affirmed its collaboration with Google to ensure its advertisements are clear and compliant with ASA guidelines. The spokesperson noted that the relevant advertisement was removed before the ASA’s ruling.
Similar findings were issued against Booking.com and hotel group Accor, while staycation chain Butlins was criticized for altering the deadline of a sale promoted via email.
Accor stated to the ASA its belief that its advertisements were accurate, as rooms were available at or below the headline prices in the days following their publication.
In a statement to the BBC, Accor said the specific advertisement criticised by the ASA had not been shown since.
“We are taking this opportunity to further strengthen our existing internal processes,” a spokesperson for Accord said.
Booking.com provided the watchdog with a screenshot demonstrating that seven bookings had been made at the prices it advertised.
A spokesperson told the BBC that Booking.com accurately displays price and availability at the time advertisements are shown and will work with the ASA “to address any outstanding questions they might have”.
The ASA also found Butlin’s had breached its code by writing to customers that “The big Butlin’s sale ends in four days” and “Time is running out”.
The deadline to participate in the sale was eventually extended by two weeks, which the watchdog said was unfair on those who had been put under pressure to book a break before the initial deadline.
It urged the firm to ensure future promotions are fair to consumers. Butlins said no customers were disadvantaged by the extension of the sale window.
The ASA’s findings follow the Competition and Markets Authority’s announcement on Tuesday of an investigation into eight companies regarding potentially misleading online price claims.
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