Google ‘makes it harder for holidaymakers to find the cheapest hotel prices’ – and the search engine is taking a slice of the money
The Wall Street Journal has accused Google of giving preferential treatment to adverts by certain hotel chains, putting others at a disadvantage
HOLIDAYMAKERS are unable to find the cheapest prices because of the way Google works, it has been claimed.
The online search giant gives preferential advertising treatment to certain hotel chains, putting small online travel agencies at a disadvantage and stopping customers from seeing all the available options, according to the .
It claims that travellers are unknowingly paying more because they are limited to seeing options and some hotel chains are "ganging up" to undercut competition.
It believes that large hotel chains are trying to cut out online travel agencies, which force down prices and take a slice of the commission, by using Google.
Google has made it harder for online travel agents to rank highly on search because of the way it sells adverts.
Adverts are sold via its "Keywords" platform, with companies bidding on certain words which customers may search for when booking a holiday.
The WSJ claims Google restricts online travel agents from using hotels' brand names, meaning customers don't always get to see all of the options when using the search engine to find hotels.
Google denys this. Instead, it claims that it stops ads which might dupe travellers into thinking they are booking directly with a hotel.
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The search engine also charges 10 to 15 per cent commission on bookings made through its travel service, according to the WSJ.
A Google spokesperson said: "The online travel industry is highly competitive and in fact, travel companies are some of the most avid users of Google’s advertising offerings.
"Unfortunately, the Wall Street Journal mischaracterized how some of these offerings work.
"Google auctions are open to all advertisers that comply with our policies, we do not restrict the use of trademarks as keywords, and we do not require proprietary information to run hotel ads. "And since protecting users is a top priority for Google, we have detailed policies against deceptive or misleading use of trademarks in ad text and take swift action when we see this type of abuse on our platform."
But online travel websites are not completely blameless.
How to book a bargain holiday
JANUARY is usually the most popular time for booking a holiday, but how can you avoid getting ripped off? We explain.
- Use Google to search for deals, check hotels direct as well as using comparison websites before you book
- Know the country you want to travel to? Widen your search away from the most popular places to include cheaper up-and- coming resorts. This summer try Figari in Corsica and Kefalonia in Greece.
- If you simply want sunshine and aren’t worried where, be flexible on your destination. More choice usually means lower prices.
- Check the average weather at your resort before you book. If a summer deal is really cheap, it could mean it is the rainy season.
- Even the luxury travel operators and airlines have their sales. Sign up for email updates to make sure you are the first to know. The BA sale is on this week.
- Ready to fly? Check the late-deals section. These are last-minute holidays leaving in the next few days, which travel firms need to sell fast. They can offer fantastic value.
- If you can, book outside peak times for the lowest prices. But if you need to fly during school holidays, book as early as possible for the best deal then spread the cost by saving towards it each month.
- Check if your credit card points or loyalty card points, such as Nectar, can be cashed in for money off. Join your airline’s own loyalty scheme to collect points on your holiday.
Earlier this year, the Competitions and Market Authority (CMA) launched an investigation into hotel comparison websites to make sure that customers are not being ripped off.
It is looking at different tactics used by the websites, including pressure selling, hidden charges and fake discount claims.
A result of the investigation will be published next year.
Back in 2014, the Office of Fair Trading revealed that some hotels and websites had colluded to agree to cap prices.
It meant that some guests were overcharged for rooms booked on discount websites.
The websites - InterContinental Hotels Group, plus Booking.com and Expedia - agreed to stop the practice after the scam was uncovered.
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