The Advertising Standards Authority (ASA) in the United Kingdom has banned advertisements from Booking.com, Hilton, Accor and Travelodge, ruling that their 'from' price promotions misled consumers by overstating how many rooms were truly available at the lowest rates.
When Hotel Deals Sound Too Good to Be True
ASA's decision centres on paid search ads seen earlier this year. One example is an ad that Booking.com published in May, stating, 'easyHotel Sheffield City Centre From £28' ($36). However, the watchdog determined that only seven bookings were made at that price without sufficient data on the availability of additional dates or rooms at that rate.
Similarly, Accor's campaign advertised rooms from £27 ($35) at an Ibis Budget in Birmingham, when in reality, that rate was only available on a single night in July.
Travelodge's 'from £25' ($33) and 'from £21' ($27) ads for its Nottingham Riverside and Swansea M4 hotels were likewise deemed misleading pertaining to the availability of significantly reduced rates.
Hilton also faced scrutiny as the ASA determined that there was insufficient evidence to support claims that a substantial number of rooms were available at the advertised rates of 'from £68' ($89) or 'from £59' ($77).
'From' Prices Must Reflect Real Availability, ASA Warns
Under the CAP Code, which sets the advertising standards in the UK, any price claims that use the term 'from' must accurately reflect the availability of a product, specifically hotel rooms, at the lowest price without exaggeration. Advertisers are expected to have supporting data showing that availability is spread reasonably across dates, not simply limited to flash nights.
In its rulings, the ASA noted that consumers would reasonably understand that the 'from' price suggests broad availability, and not a rare one-off rate. When that expectation wasn't met, the ads were deemed misleading. Emily Henwood, operations manager at the ASA, explained: 'If only a few rooms are actually offered at the price shown, or it only applies to a specific date, then this information must be made clear to avoid misleading people.'
From 'Cynical' Tactics to Compliance: Industry Reacts
The consumer rights organisation, Which?, expressed approval of the ASA's decision and described the low-price tactics as 'bait-pricing' and 'cynical.'
In response, Booking.com asserted that the data it supplied to Google was correct, but admitted it didn't control which dates or prices were dynamically featured in the ads. Accor has responded to the ASA's concerns, stating that the problematic 'from' advertisements have now expired and assuring that they will implement stricter internal controls moving forward.
Travelodge explained that the prices shown were generated from its live pricing feed and represented the cheapest bookable date available. It added that the company recognises customers expect clarity and transparency in pricing and that they would continue to work closely with Google to ensure all ad formats are clear and fully compliant.
Hilton, on the other hand, blamed a technical error for its misleading ads, yet ASA ruled that the ad must not appear again. The regulator instructed Hilton to ensure that, when using 'from' price claims in the future, a significant proportion of rooms are actually available at the advertised price and reasonable range of dates.
Originally published on IBTimes UK
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