The UK government is looking to crack down on so-called “hidden fees” charged by transport and hospitality firms to enhance consumer transparency.
The Department of Business and Trade proposes new measures to “boost transparency” for consumers after research revealed that 72% of transportation companies have hidden fees in their booking and sales processes. This figure was 56% for the hospitality industry.
“The research has confirmed so-called ‘drip pricing’ – where the price paid at checkout is higher than originally advertised due to extra, but necessary, fees – is widespread,” the department said in a statement.
According to new research, three-quarters of the transportation sector has hidden costs in their products, highlighting the need for a transparent and fairer customer journey.
Today, September 4, 2023, the UK government launched a more comprehensive consumer consultation on this issue, which addresses fake reviews and confusing labels in various industries, including transportation, supermarket shopping, and food deliveries.
As part of the unbundling of fares, the airline industry has introduced various additional services in recent years, including seat allocation, baggage, and priority boarding. However, there have been debates about how many of these charges are optional for passengers.
