Online travel agency eDreams has paid nearly $60,000 in penalties after the Australian Competition and Consumer Commission (ACCC) took action against the OTA over what it alleged were misleading subscription prices.
In addition to the penalties, eDreams will provide a court-enforceable undertaking to address the watchdog’s concerns. Such actions typically commit a business to changing the conduct in question and to compliance measures going forward.
eDreams operates a paid membership model that promises discounted fares and deals to subscribers, a structure that has become increasingly common among OTAs.
The regulator’s concern centred on subscription pricing the ACCC alleges was presented to consumers in a misleading way.
Why it matters for advisors
OTAs are a direct competitor for bookings Australian travel advisors handle every day, and pricing transparency is one of the clearest points of difference advisors can lean on.
Subscription-based discount models, where a customer pays a recurring fee to unlock cheaper fares, can be confusing to compare against a straightforward quote. So the ACCC action is a reminder that the headline price is not always the full story.
“The law requires businesses to be upfront about the total price consumers have to pay for goods or services. Businesses must be clear about the minimum total amount consumers must pay for a subscription,” ACCC Commissioner Luke Woodward said.
KARRYON UNPACKS: Subscription models are spreading fast across the online travel space, and the ACCC’s action shows how easily their pricing can confuse consumers. For travel advisors, clear, all-in quoting remains one of the simplest ways to stand apart from the platforms.
