Which? Call For Crackdown On 'Drip Pricing'

Which? Call For Crackdown On 'Drip Pricing'

Last Update: Saturday, 5th October 2024 00:03

Which? is calling for the government to ensure that airline fees - including for seat selection and luggage - are included in laws cracking down on sneaky 'drip pricing' tactics that can increase the cost of a flight by hundreds of pounds.

The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) is due to come into effect in April 2025, and should put an end to drip pricing (charges that are added or 'dripped' onto the advertised price). But it is unclear whether add-on charges beyond unavoidable booking or transaction fees will be regarded as covered.

For many passengers, paying for cabin bags or seat selection is essential, but these extra charges are often not included in the headline price, making it difficult to compare the true cost of flying with different airlines. Which? research found these add-ons could increase the price of a Wizz Air flight from London Luton to Lyon from £29 to £124 per person, while prices on some routes with Ryanair and easyJet more than doubled.

Which? is calling for the government and regulators to make it clear that the price of any extra fees or add ons are shown to consumers upfront at the start of the booking process so they can easily compare the real price of their flights.

The consumer champion is also calling for a ban on charging parents to sit next to their children on flights. Ryanair currently forces parents travelling with under 12s to pay for a seat next to their children, costing £8 when Which? checked - though Ryanair says prices start from €4. Other airlines do not always guarantee that parents can sit with children, which may prompt travellers to pay to ensure their family can be together.

The Competition and Markets Authority, which is tasked with drawing up the government guidance relating to the new legislation, can help make sure this practice is eradicated. Other countries have taken steps towards explicitly prohibiting airlines from imposing additional costs for booking seats next to children under 12.

When Which? carried out a snapshot analysis of 15 'ultra-low cost' flights with budget carriers easyJet, Ryanair and Wizz Air, it found that in some cases a flight would cost four times more than the headline fare once fees for seat selection and a cabin bag were added - potentially adding hundreds of pounds to a booking for a family. Prices for hold luggage would likely be even more substantial.

Of the three airlines Which? looked at, it found Wizz Air charged the most for extras on average.

For example, a return flight from London Luton to Lyon in France with Wizz Air was listed with a headline fare of just £29 per person. But choosing the airline's 'Wizz Smart' fare, which includes a 10kg cabin bag, standard seat section and priority boarding, sent the price soaring to £124 per person - over four times as much (an increase of 328%). Looking at the final price, 77 per cent is made up by additional fees.

Similarly, a Wizz Air flight from London Gatwick to Milan was quoted as £40, but the added extras meant the price soared by 217.5 per cent, to £127, meaning additional fees accounted for 69 per cent of the final price. Likewise a Wizz Air flight from London Luton to Grenoble that also had a headline fare of £40 more than doubled (an increase of 142%) to £97 once extras were added, with extra fees accounting for 59 per cent of the final fare.

With Ryanair, around half of the final fare was usually made up of additional fees in the examples checked by Which?.

For example, a Ryanair flight from London Stansted to Nantes was listed with a headline fare of £33, but selecting its 'Regular' fare, which adds seat selection and a cabin bag, along with priority boarding, more than doubled the price to £84 (a rise of 155%). 62 per cent of the final fare was made up of additional fees.

Similarly, a Ryanair flight from Manchester to Belfast was a bargain £30, until adding seat selection and a cabin bag via its Standard fare more than doubled the price to £71 (a rise of 137%). In this case, 66 per cent of the final price was made up of extras.

It was a similar picture with easyJet. A flight from London Luton to Malaga was priced at just £41, but adding seat selection, a cabin bag and priority boarding saw the price more than double (a rise of 171%) to £111 - meaning 63 per cent of the final fare was dripped fees. In another example, a flight from Birmingham to Belfast went from £46 to £114 once these extras were added, an increase of 213 per cent. Overall, extras made up 60 per cent of the final price.

Rocio Concha, Which? Director of Policy and Advocacy said:

"Sneaky dripped fees can hugely change the final price people pay for goods and services and this is particularly true with flights, where the difference between the advertised price and the final fare can easily reach hundreds of pounds for a family.

"Which? is calling on the government to ensure that additional fees for add-ons like seat selection and luggage are made clear at the very start of the booking process, to ensure travellers can easily compare the final price they'll pay with different airlines. Unfair charges for parents to sit with children on flights should also be banned."

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