Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'

Trainline, Virgin Atlantic, and RED Driving School are under investigation by the UK's consumer watchdog over concerns they are not upfront about total prices. The Competition and Markets Authority (CMA) is examining whether the three companies engaged in 'drip pricing,' an illegal practice where mandatory fees are not included in the initial price shown to customers. The CMA stated that Trainline added fees of up to £2.79 for train bookings and £1.50 for coach bookings, costs that can accumulate for frequent travelers. Trainline has faced similar accusations before. Virgin Atlantic is being scrutinized for potentially omitting mandatory resort fees and local taxes from package holiday prices, which the CMA noted can add hundreds of pounds. RED Driving School is also being investigated for not including mandatory booking and digital fees in the upfront price of driving lessons, which could exceed £7 per lesson. Earlier this year, the CMA ordered two other driving schools to refund over 80,000 customers for similar pricing omissions. Emma Cochrane, the CMA's executive director for consumer protection, emphasized that the first price customers see should be the price they pay, especially when households are carefully managing their spending. Virgin Atlantic Holidays stated they are committed to transparency and will cooperate fully with the CMA's investigation, noting that mandatory fees are indicated at multiple stages of booking. Trainline also affirmed its commitment to clear pricing and is taking steps to enhance fee presentation.

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Both are costs that can add up for frequent travellers.