The consumer group, Which? has recently released information which has shown that around 50 percent of hotel companies in the UK are breaching important regulations which state that they have to include value-added tax in the prices that they quote in their headlines. This information is recently been published in the Travel magazine which is put out by Which?
The investigation has shown that nearly 24 hotel chains in the country are not showing VAT in their prices when people book online. This is something that is a breach of trading standards and these hotels have been officially warned about not including VAT in their prices.
In the magazine article the company highlighted several properties which were not adding the price of VAT onto their room rates. This makes a significant difference as VAT is currently at 20 percent, which makes it a large addition to any price that is quoted.
This can mean that people are misled about the price of a room, and can be encouraged to book with one hotel, only to find out that the price is higher later on. This makes comparing the prices of different hotels challenging as honest hotels will include VAT in their prices.
In the magazine article, there is a quote from a spokesman of the hotel chain Mercure who stated that, “We are disappointed to see that this is the situation in the industry, and we have looked into the situation for ourselves. We found that only one of our hotels in the country was not meeting these regulations and we have since taken steps to remedy the issue.” The issue seems to be affecting some of the most well-known hotel groups in the country, and it is likely that they are breaching the regulations in order to compete with each other.