One way to get over post-holiday blues is to book another holiday. It’ll give you something exciting to look forward to when the daily grind is getting you down. However, as you start searching for a great deal on your next getaway be on high alert for a sneaky practice that could blow your budget.
Drip pricing is a tactic used by websites or apps to trick or manipulate you into spending more money than you’d planned. It happens when an attractive price is advertised at the beginning of an online purchase, but then extra fees and charges (such as booking and service fees, insurances) are gradually added during the purchase process. It can also include pre-selected extras you may not want, and add-ons presented in a way that makes you feel you must buy them.
This type of pricing tactic is commonly seen when purchasing flights, event tickets, accommodation or rental cars. All the things you’re likely to need for that exciting holiday.
When you have to manually un-tick and opt-out of the pre-selected extras before you get to the final price, you’re more likely to get caught out by drip pricing. And when you end up paying more than intended or you felt misled about the price – then you’ve experienced consumer harm.
To prevent being stung extra through sneaky drip pricing, remind yourself about the deal you saw on the flashy ad that drew you in.
Stick to your holiday budget. When you start the online booking process, prepare to back out if the final price is not what you were expecting and shop around for a better final price.
As you move through each screen during the booking process, keep your eyes peeled for any pre-selections. Deselect anything you don’t want and double check again before you hit that final pay button.
Under the Australian Consumer Law (ACL), businesses are only allowed to add pre-selected charges and fees if the additional prices are disclosed at the beginning of the purchasing process. Otherwise, their advertising could be considered misleading.
If you are misled into paying an optional charge, then raise this with the business and request a pro-rata refund to the value of that added charge.
If you believe a business is breaching the rules on pre-selected fees and charges, it’s best to try and resolve it with them first. Should that fail, contact Consumer Protection on 1300 30 40 54, or consumer@demirs.wa.gov.au for advice.
Looking to book a holiday house? Make sure the short-term rental accommodation (STRA) registration number is displayed on the ad. This lets you know that the host has complied with new rules for operating STRA in WA. You can also check that a STRA registration number is valid, and the postcode of the STRA matches the location that you are booking for. This may help to identify illegitimate ads. Check if a STRA is registered.