Explosive Study Exposes Travel Companies Ignoring New Rules on Hidden Add-On Costs — Are They Breaking the Law?

May 28, 2025

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Everyone understands how irritating it can get when browsing for flights and vacations on the internet.

You’re attracted by a significantly lower price but end up facing a considerably higher total amount when you reach the checkout due to additional administrative and booking charges.

The Digital Markets, Competition and Consumer Protection Act – a legislation enacted in April – aimed to eliminate those annoying additional fees.

However, in a fresh inquiry,
Which?
has discovered that several prominent travel companies, such as Megabus, Wowcher, and-loveholidays, might be flouting the regulations by either disregarding them entirely or significantly delaying compliance.

In the worst-case scenarios, travelers might end up paying several hundred pounds more than the initial cost.

When comparing hotel resorts on platforms like Kayak and Trivago, Which? discovered significant price differences among various offers, even for accommodations such as the Excalibur Hotel.
Las Vegas
.

Experts from Which? discovered that a seven-day trip in July costs only £371 with loveholiday, whereas Booking.com and Hotels.com quoted approximately £700 for the same duration.

Lovetholidays stated that their price covers hotel fees and local tourist taxes.

When Which? reached out to loveholidays, the company acknowledged that the quoted price didn’t cover the entire hotel fees, unlike what Booking.com and Hotels.com factored in.

In contrast, an astonishing additional £257 was due upon check-out.

Excalibur, similar to numerous hotels in Las Vegas and many across the US and the Caribbean, imposes a ‘resort fee’ – an obligatory charge for amenities you might or might not utilize.

This enables them to quote a price for an upfront payment and then charge you a significant additional amount upon departure.

While this practice is legally permissible—even facing significant criticism in the US—UK-based websites must disclose these charges upfront to their customers according to the updated DMCC regulations.

Which? reports that following contact from the consumer advocate in February, Loveholidays made minor adjustments to their listing. They removed the statement claiming their price covers all hotel fees and added the clarification ‘hotel policies may require additional charges depending on where you stay.’

Which? also states that LoveHolidays asserted it would guarantee compliance with upcoming regulations before they were implemented. However, when the consumer advocate group verified in May, it alleges these measures had not been put in place yet.

It states: ‘In contrast to numerous competitors, it failed to display the resort fee for the Excalibur.’

Loveholidays’ description currently states: “Your hotel might impose extra charges, payable at the location,” yet it fails to disclose that these mandatory fees can increase your accommodation expenses by several hundred pounds.

When Which? reached out to loveholidays once more, the travel website reportedly refrained from issuing a statement but indicated it was investigating the possibility of including resort fees within their pricing.

As long as this continues, Which? maintains that the firm is violating the law.

Experts from Which? further comment: ‘While some lesser-known websites aren’t incorporating resort fees, many major platforms such as Booking.com, Expedia, Hotels.com, and Lastminute.com do include these charges.’

When examining holiday deals on the discount site Wowcher, Which? discovered a comparable issue.

A one-week summer vacation to Malta was initially quoted at £1,278; however, an additional £9.99 ‘administrative fee’ was added during the final booking process.

In February, Wowcher informed Which? that they were reassessing their administrative fee practices and intended to ensure ongoing compliance with all relevant laws.

Nevertheless, as of May, Wowcher was still levying a £9.99 administration fee, reported Which?.

At the same time, when Which? investigated budget coach operator Megabus, they uncovered similar problems.

The specialists first spotted a single-journey ticket from London to Birmingham priced at just £5.99 on the Megabus site; however, they were then charged an additional £1.50 when checking out, which raised the fare by approximately 25% to £7.49.

Which? reported in February that Megabus stated they would adhere to any new regulations implemented.

Nevertheless, when Which? revisited the site in May to check for a trip on the Megabus.co.uk platform, they found that a £1.50 booking fee was still displayed right before completing the transaction.

The experts at Which? comment: ‘This charge isn’t disclosed at any point during the buying process on their website.’

‘The National Express website includes a disclaimer stating that headline prices do not include a £1.50 booking fee, which is more transparent than what Megabus offers.’

Which? learned from Megabus that they are ‘dedicated to providing clear and cost-effective journeys’ and plan to revise their pricing structure so that booking fees will be prominently displayed right from the beginning of the reservation process by late May 2025.

Under the DMCC Act, the Competition and Markets Authority (CMA) has the authority to impose penalties of up to £300,000 or 10 percent of global revenue—whichever amount is greater—without needing to proceed to court.

Trading Standards may also implement the regulations.

During the initial 12-month period after implementation, the CMA has stated that it will focus on blatant violations of the law and practices that cause significant harm to consumers.

This encompasses ‘fees that remain concealed until much later in the purchasing process,’ along with various other problems.

Which? thinks that travel companies continue to use dubious additional charges to extract extra funds from their clients, potentially violating the law.

Rory Boland, the Editor of Which? Travel, commented: “Hidden charges and additional costs can substantially alter the ultimate amount travelers end up paying for their vacations, with discrepancies between initial prices and final totals sometimes reaching several hundred pounds in extreme instances.”

‘We have found instances where brands are disregarding the new regulations designed to shield consumers from unforeseen charges, and we think this might be illegal.’

In reaction to Which?’s research, Megabus stated: “Our commitment is to provide clear and budget-friendly travel options for our passengers.”

‘We are presently updating our website — with completion scheduled for the end of this month — to make sure that every fee, such as our £1.50 reservation charge, is prominently displayed right from the beginning of the booking procedure.’

‘We strongly endorse initiatives aimed at enhancing price clarity throughout the travel sector and remain committed to ensuring our operations comply with the most recent regulatory standards.’

‘Wowcher has made several modifications to its website to guarantee adherence to the DMCC regulations.’

This has involved offering an estimation of its fluctuating administrative fee within its cost breakdown, displayed visibly and prominently on our transaction pages before customers proceed to the checkout stage.

‘We aim to make our website straightforward and open for customers, enabling them to confidently make purchasing choices on the Wowcher platform.’

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Article Categories:
business · commerce · laws and regulations · shopping · travel

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