InteleTravel chief executive James Ferrara has issued a stark warning to the UK travel industry, calling on the Competition and Markets Authority (CMA) to intensify its crackdown on what he describes as “rampant” misleading pricing practices.
Ferrara, the co-founder of the homeworking travel group, claims that numerous online travel sellers are deliberately failing to advertise the total cost of holidays in their headline prices. By masking mandatory fees until the final stages of the booking process, these companies are effectively creating a false sense of value to gain an unfair competitive edge.
“They’re breaking the rules in order to seem more competitive,” Ferrara said. “That behaviour has to be brought under control. You might see a hotel room listed for £150, but by the time you reach the end of the checkout process, there is an additional £50 fee. That is the kind of misleading behaviour that needs to be addressed.”
The CMA has recently signaled its intent to clean up the sector, with consumer law director Jason Freeman revealing last month that the regulator has issued over 150 warning letters, launched 18 formal investigations, and successfully settled three cases. However, Ferrara insists that more aggressive enforcement is required to hold “bad actors” accountable.
While the regulator’s renewed focus is welcome, Ferrara highlighted a significant loophole: the prevalence of offshore-based Online Travel Agencies (OTAs). According to the InteleTravel chief, many of these firms operate beyond the direct jurisdiction of UK authorities and frequently disregard local consumer protection laws, creating a difficult playing field for domestic companies that operate with full transparency.
For its part, InteleTravel maintains that it is unfazed by the tightening regulatory environment. Ferrara stated that because his agents are committed to displaying accurate, all-inclusive headline prices, the company remains confident in its compliance. “We just have to make sure we’re totally transparent and the headline price is the price you pay,” he noted. “All I would ask is that there are resources to enforce these laws against those who refuse to play by the rules.”
To ensure the group remains ahead of evolving requirements, InteleTravel UK and Ireland has bolstered its internal compliance team. Managing director Tricia Handley-Hughes confirmed the recent appointment of Rebecca White as compliance manager. Handley-Hughes noted that White’s appointment was a strategic move designed specifically to navigate the complexities of CMA expectations.
“When I appointed Rebecca, I was very aware of the CMA, so we needed somebody who was experienced in that field,” Handley-Hughes said. “She has already begun extensive communication with our advisors to ensure they fully understand and adhere to the CMA’s standards.”
As the travel industry heads into a busy booking season, the pressure is mounting on regulators to ensure that transparency remains the industry standard, rather than a competitive disadvantage.
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