3 out of 4 consumers face manipulative pricing while booking flights and hotels online in India: Survey

How many times have you faced issues while making payments for a flight ticket or booking a hotel online? When you search for a flight or a hotel on a portal, after selecting dates, adding all your information, and when it's time to make the payment, you get a prompt saying that the price has changed and then you are asked to continue with booking but now the final price has changed and it's higher than what was shown earlier.

In case you faced this problem on a popular travel site, you're not alone. These are some alleged dark patterns that travel portals use to take advantage of consumers. India has taken a significant stride in consumer protection by prohibiting "dark patterns" on online platforms and targeting deceptive practices that manipulate and mislead customers. The Central Consumer Protection Authority (CCPA) recently released comprehensive guidelines addressing issues such as false urgency, hidden charges, and misleading advertisements.

In response to the CCPA guidelines, LocalCircles, a community-driven platform, initiated a survey focusing on the online travel sector, which is known for substantial consumer complaints. The survey exposed a stark reality, wherein three out of four users of travel apps and sites frequently encountered fare surges while booking flights. Here's what the LocalCircles survey has revealed.

Dark patterns, incorporate strategies like false urgency, hidden charges, and misleading advertising. These have long been a concern in the e-commerce domain. The government identified 13 types of dark patterns and issued guidelines to curb unfair trade practices and safeguard consumers.

Also read: UN body to meet to discuss ways to combat online dark patterns

LocalCircles three-month review of 100 platforms in India, commencing with the online travel sector, to gauge the prevalence of dark pattern issues drew responses from over 33,000 consumers across 323 districts.

Many of us have witnessed issues while making payments, online portals prompt, that the prices have changed and automatically refresh to a new price than what was shown earlier. This is the most-reported issue by consumers, wherein there is an abrupt alteration of airfares and hotel room tariffs during the booking process. An astonishing 73% of respondents indicated they "very frequently" experienced surges in prices within a single browsing session. This alarming trend suggests that fares and tariffs adjust based on users' search patterns or eagerness to book.

False urgency tactics, a dark pattern often employed during special sales and promotions, were reported by 74% of surveyed consumers who use travel apps or make bookings online. Instances where a false sense of urgency is created, such as claiming "last 2 seats available" or "last 2 rooms at this price," occur distressingly often.

As users finalise their travel or hotel bookings, the survey highlights a recurring issue with hidden charges. Around 67% percent of respondents indicated they "very frequently" encountered undisclosed charges during the payment stage, significantly elevating the final cost of the flight ticket or room. The lack of upfront disclosure poses transparency concerns for consumers.

Now that the government has issued guidelines, it aims to eliminate dark patterns, the true challenge lies in their enforcement. The efficacy of these measures will depend on CCPA's action against violators.