Price gouging ‘rampant’ as booking sites cater to visitor demand

Another unexpected consequence of the region’s popularity during the COVID-19 pandemic has seen accommodation providers report price gouging on international booking sites.

The Registered Accommodation Providers Margaret River Region says inflated prices are catching visitors unawares and triggering complaints.

Margaret River Motel operator Donna Seaton told the Times guests had noted major price discrepancies between fees paid through online sites like Expedia and Agoda and the lower prices paid when booking direct.

“The practice is rampant,” she said. “Effectively, we think our guests are paying the rates we feed through, but we have no idea what our guests paid on sites that use virtual cards.

“The money is actually irrelevant, as people have an expectation of what they would receive staying at a property that was marketed at $211.10 per night compared to a property marketed at $155 per night.” Ms Seaton said booking sites knew Margaret River was experiencing heightened demand because of travel restrictions.

“They’re going to capitalise on this and make as much money as they can,” she said.

Local MP Terry Redman said the high prices were a cause for concern. “It seems overseas online booking platforms are charging unsuspecting customers a premium rate for accommodation when the demand is high,” he said.

“This unfair practice is creating unrealistic expectations with guests, as visitors paying a higher price expect a higher level of luxury and service.

“When this expectation is not met, they write poor reviews on accommodation websites or complain to the hosts,” Mr Redman said.

With those platforms based overseas, it was difficult to force accountability, he said.

He urged tourists to book directly with providers when visiting the South West.

Agoda.com did not respond to inquiries, but an Expedia Group spokesperson said they knew of no “unusual prices”.

“We are investigating, and encourage our partners to contact us with relevant screenshots if they become aware of any (high prices) so we can look into (it).”

A Margaret River-Busselton Tourism Association spokeswoman said booking officers reported no news of increased prices.

RAPMRR spokeswoman Debbie Noonan said if the practice continued unabated it would damage the region’s reputation.