Travellers feel stung by ‘misleading’ teaser prices advertised by airlines, train operators and hotel companies

– Travellers left out of pocket as true cost of flights, train tickets and hotel rooms have been found in some cases to be up to 527% more than the price advertised
– The travel industry is one of the worst culprits for advertising low “teaser” prices and then hiking the final price with added fees and charges, study finds
– Nearly seven in ten people surveyed say they have been left out of pocket by this type of marketing ploy
Airlines, train operators and hotel companies have been found to be luring in customers using “misleading” teaser prices before hiking the final cost by more than 500% in some cases.
A new study commissioned by Shawbrook Bank found that customers can end up paying up to 527% – or hundreds of pounds – more than the advertised price for flights as the cheapest deals are often limited.
The research also found that train journeys can cost passengers up to 428% more than the price advertised, while the final price of renting a car can be up to 58% more than the advertised price once additional charges are factored in.
A survey of 2,000 people conducted on behalf of Shawbrook Bank found the travel industry to be one of the worst offenders for employing this type of marketing ploy. Some 45% of respondents said holiday companies use this tactic the most, followed by airlines (41%) and hotels (33%).
More generally, nearly seven in ten (69%) people surveyed said they have ended up paying more than the initial advertised price because of online brands that use “teaser” prices to lure customers to their websites.
Nearly eight out of ten people (79%) surveyed say they feel cheated by the brands that use “teaser” prices. Furthermore, almost three-quarters of surveyed respondents (74%) said this tactic left them feeling frustrated, something a leading psychologist has dubbed “FrOMO” or the Frustration of Missing Out on advertised prices.
While this pricing tactic is popular among online brands, it is despised by holidaymakers and is eroding many people’s trust in online companies.
More than half (54%) of the 2,000 consumers that were surveyed say they would not recommend a company that used this technique to a friend or family member.
Paul Went, Managing Director of the consumer division at Shawbrook Bank says:
“Our latest research shows that FrOMO has become a common experience for British shoppers. There is no doubt that consumers feel misled and frustrated by teaser pricing and we highlighted and addressed this as a problem in personal loans earlier this year with our Transparency Charter. We found the gap between the interest rates advertised by lenders and the interest rates paid by UK customers was widening, which was causing confusion and frustration among consumers.
“FrOMO clearly has a major impact on how we shop and what we think about the brands who subject us to it. It has made the process of shopping for holidays, flights, hotels, train tickets, car hire, tickets to gigs or sporting events and personal loans difficult and complicated. All too often getting the product or service you want can feel like a battle and that isn’t the right kind of relationship we want to foster with customers. It’s for that reason we have made a promise to our borrowers that we will be upfront with them from the outset.”
Honey Langcaster-James, a prominent television psychologist who has appeared on Big Brother and Love Island, says:
“Imagine if ‘teaser’ pricing happened on the high street and what you were charged at the till was different from the price on the shelves? There would be chaos in shops much worse than any Black Friday shopping spree.
“In life we tend to feel let down by anyone who over-promises and under-delivers. If this happens on a repeated basis then we start to become angry and frustrated and in worst case scenarios this experience can sever a relationship. Essentially, this is what is happening when brands constantly tease prices before increasing them when we decide we want to make a purchase. The feeling of frustration which comes from missing out leaves us feeling cheated by the brands we are buying from and sometimes we will choose to walk away, perhaps even for good.”