Eight out of ten people would not willingly go back to companies which hit them with hidden charges, according to a new survey.And there’s a warning that hidden charges are sparking an angry consumer backlash, which could soon start to cost offending companies business.
Budget airlines were named as the worst culprits for ripping off customers with hidden charges – according to a survey by the mystery shopping company and business intelligence analysts, Retail Active.
A catalogue of complaints from customers includes a traveller being forced to buy a new full fare ticket after getting the names wrong on the booking form.
The survey, which polled 2000 people, says customers are fed up with being hit by an increasing number of hidden charges in a wide range of sectors including in the leisure, holiday, entertainment, travel and on-line retail sectors.
Customers are demanding action to force companies to come clean about their real costs.
Ryanair and Easyjet were named as the worst offenders for bumping up advertised budget rates with a string of hidden charges, which could add hundreds of pounds to a booking.
Many of those taking part in the survey said they had abandoned the process of making an on-line booking with budget airlines, as the ad-on charges piled up.
More than nine out of ten people said they resented paying hidden charges and the remainder said they only found it acceptable if extra services were involved.
The same number said they didn’t feel they were being advised about extra charges in time and that they were left until the last minute – when it was too inconvenient to abort the booking.
Top complaints against budget airlines were:-
• Adding charges for essentials like checking in, baggage allowances and paying on credit and debit cards when there was no other choice.
• Paying to guarantee passengers could sit together
• Exorbitant airport charges
• Paying “penalty” charges for administration for errors made while booking
• Exorbitant fuel, airport charges and transfer fees
Retail Active’s managing director, Julian Chamberlain said: “Our survey reveals growing consumer anger with companies advertising misleading prices and then sneaking in hidden charges as part of the purchasing process.
“For many people, one more charge has become the “last straw” and they’ve called off the deal. More than 86 per cent of those surveyed said they would not willingly return to a company which hit them with a hidden charge at the end of the booking.
“Many of those taking part demanded that retailers should be forced to be honest about the real costs.
“It is clear that consumer patience is running out over hidden charges and companies persist with this practice at their peril.
“Two budget airlines were named as the main culprits – but there are many other areas where customers feel exploited – including hotels, “all-inclusive” holidays, restaurants, concerts and on-line shopping.”
One respondent booked at a hotel advertising free meals and accommodation for children only to be told there was a £20 per child “supplement”.
Postal charges for goods ordered on-line was another problem area – with customers reporting a £25 delivery on an item costing only a few pounds and being charged two lots of postage for two items in the same parcel.
Julian Chamberlain said: “It is obvious from the response that hidden charges are becoming a major consumer issue and that companies which don’t fairly publicise their extra charges could soon start to feel a backlash from angry customers.”
