Online agencies want the Competition and Markets Authority watchdog to investigate. They argue carriers should be mandated to provide OTAs access to flights “on a fair, reasonable and non-discriminatory basis”. Increasingly, budget airlines, particularly Ryanair, are refusing to sell via OTAs or are restricting supply.
The OTAs, made up of several key brands including On the Beach, Expedia, Skyscanner and eDreams under the Online Travel UK grouping, also want a code of conduct put in place. The group is supporting an On the Beach discussion paper, Safeguarding Consumer Choice in the Travel Sector, which it hopes will influence MPs.
On the Beach chief executive Shaun Morton said: “Millions of people book with online travel agents every year because they can access choice, value and Atol protected package holidays – and consumers have told us these things are really important to them.
“This is under threat because low-cost airlines are taking advantage of their market power and using anti-competitive behaviours, scaremongering tactics and smear campaigns to remove consumer choice, degrade the customer experience and purposefully make life difficult for online travel agents.
“Without urgent intervention, the UK travel sector will become dominated by a very small number of airline players, which should be of huge concern for everyone.”
The OTAs want measures similar to Open Banking, implemented in 2018, which helped consumers access a wide range of financial services and stoked competition. The report claimed easyJet and Jet2.com now routinely encourage consumers to book a package by limiting the supply of seat-only.
On the Beach said carriers particularly discriminated against customers dependent on regional airports: “At regional airports where low-cost airlines can have a complete monopoly or a significant share on some routes, consumers can find they have no choice of airline or package provider,” it said.
The OTA claimed Ryanair blocked bookings by rejecting OTA credit cards. It also said budget carriers imposed an additional API fee on them, pushing up fares and making it difficult for OTAs to contact customers with flight information. It claimed easyJet routinely charged agents an extra £14 per seat.
The report singled out Ryanair for “reputational attacks”, labelling OTAs as "screenscrapers" and "internet pirates". It added “millions” in refunds from Ryanair for flights booked by On the Beach remained unpaid. “On the Beach had to refund customers directly for Covid cancellations and is currently suing Ryanair for over £2 million,” it said.
CMA ‘must step in’
The report slammed tactics including “Ryanair’s excessive and invasive identify verification procedures that don’t apply to direct Ryanair customers, sending communications to OTA customers that frighten them into thinking their booking isn’t real or lawful, and isolated cases of low-cost airlines removing OTA customers from overbooked flights in favour of their own package customers”.
Consumer rights expert Martyn James said: “In almost every other sector I can think of online marketplaces are embraced – so why not travel?
“The Italian Competition Authority has already announced it is investigating Ryanair for what it believes could be an abuse of dominance. UK consumers deserve to be protected too, and that’s precisely why the Competition and Markets Authority must step in to protect consumers choice and drive higher standards for consumers and businesses in the travel sector.”
Ryanair and easyJet have been approached for comment.
