Full Breakdown
CMA probes major travel firms over hidden fees
8/20/2026, 7:56:45 AM
Core investigation launch
On August 19 the UK Competition and Markets Authority (CMA) announced formal investigations into three firms—train-booking platform Trainline, airline Virgin Atlantic, and driver-training provider Red Driving School—over alleged “drip pricing”. The regulator said it is examining whether customers are shown the total price, including mandatory fees, at the start of the booking process for train and coach tickets, package holidays and driving lessons. The case against Trainline was formally opened on August 18, according to the regulator’s case record.
Background & context
“Drip pricing” describes a practice where a low headline price is displayed, but mandatory charges are added later in the checkout flow, obscuring the true cost. The CMA’s powers to enforce consumer-protection law were expanded by the Digital Markets, Competition and Consumers Act 2024, allowing the regulator to decide breaches without court action. Earlier in the year the watchdog used those powers to fine ticket-seller StubHub and driving-school group AA, securing refunds totalling more than £1.9 million for UK consumers.
Data & statistics
- Trainline: additional fees of £0.59 – £2.79 on train bookings and a £1.50 charge on coach journeys.
- Virgin Atlantic: the probe focuses on mandatory resort fees and local taxes that can add hundreds of pounds to a holiday price.
- Red Driving School: a mandatory booking fee and a “digital” fee of more than £7 per lesson that may not be shown up-front.
Official statements & responses
Emma Cochrane, the CMA’s executive director for consumer protection, said hidden mandatory charges make it harder for households to compare offers and keep budgets under control. She stressed that the first price a customer sees should be the price they pay.
Virgin Atlantic’s holiday division said mandatory fees are indicated at multiple stages of the booking journey and that it is reviewing the CMA’s concerns while cooperating fully.
Red Driving School said it values transparency, is engaging with the regulator and will meet its obligations under consumer law.
Consumer-rights group Which? welcomed the investigations and urged the CMA to act decisively if breaches are confirmed.
Verbatim quotes
- “The first price customers see should be the price they pay,” — Emma Cochrane, CMA
- “Following comments made by the Prime Minister … this move sends a clear message to other businesses to follow the rules.” — Sue Davies
- “At this initial stage, it should not be assumed that Virgin Atlantic has infringed consumer protection law, and no finding has been made.” — Virgin Atlantic spokesperson
What’s next
If the CMA concludes that any of the three firms have breached consumer-protection law, it can order compensation for affected customers and impose fines of up to 10 % of global turnover. The investigations are at an early stage; no findings have been announced. The regulator will continue gathering evidence and engaging with each company before deciding on any enforcement action.
