Save
Trivago a no-go for cheapest hotel
Heavily advertised hotel comparison site Trivago has come under fire from the consumer watchdog after it was found to be misleading consumers about providing them with the cheapest hotel room rates.

Trivago a no-go for cheapest hotel
Heavily advertised hotel comparison site Trivago has come under fire from the consumer watchdog after it was found to be misleading consumers about providing them with the cheapest hotel room rates.

A statement has outlined the Federal Court’s finding that the comparison site had breached Australian Consumer Law when it misled consumers from December 2016 by “representing its website would quickly and easily help users identify the cheapest rates available for a given hotel”.
Instead, Trivago was using an algorithm that placed significant weight on which online hotel booking site paid Trivago the highest cost-per-click fee to determine website rankings – often not highlighting the cheapest rates for consumers.
ACCC chair Rod Sims said that Trivago’s hotel room rate rankings “were based primarily on which online hotel booking sites were willing to pay Trivago the most”.
“By prominently displaying a hotel offer in ‘top position’ on its website, Trivago represented that the offer was either the cheapest available offer or had some other extra feature that made it the best offer when this was often not the case,” Mr Sims explained.
Trivago was also found to be using strike-through prices or text in different colours that gave consumers “a false impression of savings”.
Such offers were usually comparing standard rooms with luxury rooms at the same hotel.
Mr Sims said the consumer watchdog brought the case before the court because it considered that “Trivago’s conduct was particularly egregious”.
“Many consumers may have been tricked by the price displays into thinking they were getting great discounts.”
“In fact, Trivago wasn’t comparing apples with apples when it came to room type for these room rate comparisons,” he continued.
Until 2 July 2018, Trivago was also found to have been misleading customers to believe that the website “provided an impartial, objective and transparent price comparison for hotel room rates”.
About the author

About the author


Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. ...Read more

Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more

Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more

Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more

Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. ...Read more

Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more

Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more

Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more

Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more