Are Agoda Deals Actually False Marketing?

Some unhappy consumers allege Agoda deals don’t offer the fantastic savings promised either online or through the mobile app. The online travel agency is facing at least one class action lawsuit in the U.S. and a rebuke from advertising regulators overseas.

What Is Agoda?

Agoda Company Pte. Ltd. is an online travel agency and mobile app owned by Booking Holdings. Agoda’s headquarters are located in Singapore. Co-founders Michael Kenny and Robert Rosenstein started Agoda in 2003 and launched the website in 2005. Booking Holdings, formerly The Priceline Group, bought Agoda in 2007.

What Allegations Are Being Made Regarding Agoda Deals?

Agoda has faced a variety of shady sales allegations.

Agoda allegedly tries to place false pressure upon consumers to book rooms by adding “Only 1 Left” or “Just Missed It” to its lists of available hotel rooms despite the fact that many similarly priced rooms are open for booking.

Consumers’ CheckBook, a nonprofit website, conducted research in 2019 that indicated how the “Only 1 Left” icon could mislead consumers. In some cases, the dire warning was placed on an extremely specific type of room that probably had few peers to start with, such as a handicap-accessible suite with a king size bed that included a roll-in shower for non-smokers only who are not accompanied by pets. Even if that was the only room available with those exact specifications, plenty of other rooms were generally available that didn’t check every single one of those boxes.

In February 2019, the UK Competition and Markets Authority said its investigation into the marketing practices of Agoda and similar hotel booking websites found that some of the high-pressure tactics were deceitful. When a consumer browsing the website was provided warning that a high number of other consumers were looking at the identical hotel, the regulators found this prompted the false impression that the hotel and its rooms were more in demand than they actually were.

Another issue was that Agoda appeared to list prices that did not include all taxes and fees, which made the discounts appear to be better than those available from competitors that did include those fees in final listed pricing. Consumers expressed outrage over such hidden fees. The UK Competition and Markets Authority said that all advertised prices need to include applicable charges and that booking websites need to stop making misleading claims regarding discounts or availability used to induce high pressure sales.

Online hotel booking companies were given until Sept. 1, 2019 to abide by the new UK regulations.

Has Agoda Revised Its Marketing Tactics?

According to AccomNews of Australia, Agoda began using questionable marketing strategies in its online endeavors Down Under. One example showed a property listed for one price, but after clicking through a series of pages, the final price appeared to be higher than the advertised price.

In September, the Straits Times of Singapore reported that the Competition and Consumer Commission of Singapore (CCCS) gave travel businesses until Nov. 1 to stop misleading marketing tactics. Businesses must address and correct the following behaviors:

• Drip pricing, which means the published fee that draws the consumer to the listing is not accurate because it does not include all fees and taxes. Drip pricing will not be tolerated under new CCCS guidelines.
• Fake discounts that offer a certain price for a limited time only, but the price actually is extended to consumers for an extended period of time.
• Misleading price comparisons, such as saying ABCD’s website lists Hotel XYZ rooms at $200, but we offer the same rooms for only $180 when they really are not comparable rooms in terms of amenities or upgrades.
• Using the word “free” when certain conditions must be met or when there is no intention to provide anything free of charge.

The Straits Times found in September that Agoda advertised a daily deal for a certain hotel room on two different days within one week’s time. Even after the deal had presumably expired, reporters said they found the same price listed for the same hotel room.

Have Class Action Lawsuits Been Filed Due to False Agoda Deals?

Yes, at least one class action lawsuit has been filed alleging Agoda participated in deceptive marketing practices.

Consumers allege Agoda’s website and mobile app use fake discounts, false room availability numbers, and offers advertised that say they are only available for a limited time, but appear to never or rarely expire. Consumers also allege Agoda charges a service fee that they would not have to pay if they had booked their hotel room through a different avenue.

The Agoda Deals Lawsuit is David E. Martinez v. Booking Holdings Inc. et al., Case No. 37-2020-00018413, in the Superior Court of the State of California, in and for the County of San Diego.