Ministers plot crackdown on budget airlines like Ryanair and easyJet with ban on sneaky ‘drip pricing’ that sees families lured with cheap tickets before being hammered by large fees for hold luggage, picking seats and even printing boarding passes

Airlines like Ryanair and easyJet will be banned from hammering families with sneaky hidden costs after luring them into flying with low cost tickets under plans unveiled in the King’s Speech.

Rishi Sunak is to take action against ‘drip pricing’, where firms advertise a service for a price before adding on extra charges. 

It is most commonly used by budget airlines, who legally offer attractively priced tickets upfront, before adding fees for hold luggage, choosing seats and even for printing boarding passes.

While the plans will not reduce the price of travelling, they will force companies to be more upfront with customers about the cost of travel, to allow them to make a more informed choice.

It comes after Ryanair yesterday posted a 59 per cent jump in first-half earnings after record summer demand and higher prices offset rising fuel costs.

It continues to cash in on higher fares with the average price of a seat up 24 per cent on a year earlier to £50.

Revenue from add-ons for baggage, allocated seats and priority boarding ballooned 14 per cent to £2.1billion in the half year with passengers typically paying £20 each for these extras.

Revenue from add-ons for baggage, allocated seats and priority boarding ballooned 14 per cent to £2.1billion in the half year with passengers typically paying £20 each for these extras.

While the plans will not reduce the price of travelling, they will force companies to be more upfront with customers about the cost of travel, to allow them to make a more informed choice.

The changes are part of proposals worked up in Downing Street to tackle the cost-of-living crisis and are seen by Mr Sunak as a post-Brexit benefit. 

They are due to be introduced in the upcoming Digital Markets, Competition and Consumers Bill reading by Business Secretary Kemi Badenoch.

One source told the Mail on Sunday at the weekend: ‘The fees themselves wouldn’t be banned, but they couldn’t be ‘dripped’ in as you purchase your journey – to avoid people ending up paying more than they had intended.’

But the drip pricing is not just limited to airlines. Hidden fees across the travel, entertainment and hospitality industries are estimated to cost online consumers £1.6 billion each year.

Consumer champion group Which? said: ‘Customers need clear pricing upfront and should not find themselves having to pay for charges hidden until the checkout.’

Source: Read Full Article