The UK government has launched a consultation on banning hidden fees in airline ticket pricing, a practice known as drip pricing. This tactic involves advertising a low initial price and then adding mandatory charges later in the booking process, inflating the final cost for consumers.
According to the Department for Business and Trade (DBT), drip pricing costs UK online shoppers £1.6 billion annually. The practice is prevalent across sectors, with 72% of transport and communication firms, 56% in hospitality, and 54% in entertainment using it. Airlines are among the worst offenders, offering extras like seat selection and cabin bag fees that are often not included in the advertised price.
The consultation, which will run for six weeks, aims to improve price transparency. If implemented, mandatory fees would have to be disclosed upfront, preventing consumers from being misled. Business and Trade Minister Kevin Hollinrake stated that the measures would help people keep more of their money and ensure accurate information before purchases.
Prime Minister Rishi Sunak linked the crackdown to easing the cost of living burden, alongside the priority of halving inflation. The government is also consulting on measures to tackle fake online reviews. The proposals have drawn attention after a family of seven was forced to pay nearly £500 to Ryanair for failing to check in online, highlighting the impact of such fees.
