The CMA Hotel Booking Investigation: A 2026 Retrospective

ByAlistair

Article Summary: Originally published in 2017, this post tracks the beginning of the Competition and Markets Authority’s (CMA) major shift toward online booking transparency. In 2026, these principles are no longer just “suggestions”—they are enforced by the DMCC Act with significant penalties for non-compliance.

Part 1: The Original 2017 Announcement

The following text is preserved from our November 1, 2017 archive.

Competition and Markets Authority (CMA) Investigation into Hotel Booking Sites

At the end of October 2017, the CMA announced they would be looking into whether hotel booking sites deliver on their promise to provide the best deals to customers. Their investigation will scrutinise:

  • Search Rankings: How properties are ranked in results and the role commission plays.
  • Pressure Selling: Tactics used to rush customers into booking.
  • False Discounting: The use of misleading “deals.”
  • Hidden Charges: Mandatory fees not shown in the headline price.

The power wielded by intermediaries such as Expedia and Booking.com has been a cause for concern for some time, so I welcome this development. The CMA are inviting views from consumers and accommodation providers so this is a great opportunity to have your say.

Part 2: Where Are We Now? (2026 Update)

While the 2017 investigation was the catalyst, the landscape for hotel owners and OTAs has changed significantly since then.

1. From “Principles” to “Laws”

The “CMA Principles” established in 2019 have now been codified into the Digital Markets, Competition and Consumers Act (DMCC). As of 2026, the CMA has direct enforcement powers to fine companies up to 10% of global turnover for “drip pricing” (hidden fees) and misleading scarcity claims.

2. The Ban on “Drip Pricing”

The 2017 concern over hidden charges is now a strict legal ban. Hotels and OTAs must show the total price upfront, including all mandatory taxes and resort fees. If a fee is unavoidable, it cannot be added at the final checkout stage.

3. Ranking Transparency

Following the 2017 probe, OTAs are now legally required to disclose when a ranking is “sponsored” or boosted by extra commission (e.g., Booking.com’s Preferred Plus program).

4. 2026 “Cartel” Probe

Interestingly, the CMA’s focus has recently shifted. In March 2026, a new investigation was launched into major hotel chains (including Hilton, IHG, and Marriott) regarding the suspected sharing of sensitive pricing data via third-party analytics tools.

Practical Checklist for Accommodation Providers

To stay compliant with the current 2026 CMA standards:

  • Upfront Pricing: Ensure your website booking engine displays the full price (including VAT/cleaning fees) on the first results page.
  • Authentic Scarcity: Ensure “only 1 room left” messages are based on real-time inventory for those specific dates only.
  • Review Transparency: Take “reasonable and proportionate steps” to ensure guest reviews are genuine and not incentivized without disclosure.

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