Airlines, hotels and other holiday booking agents could be blocked from adding additional fees to the price of a holiday under a planned Government crackdown.
Many airlines sell tickets without luggage included. Passengers then have to pay extra to bring a bag and for other services such as seat selection.
Rishi Sunak is reportedly considering regulating the sector to stop companies charging additional fees, reports The Times.
The travel sector is particularly known for extra fees with tourists targeted through many services including accommodation and car hire.
Sunak told reporters in the USA that the companies weren’t offering “the kind of price transparency that you’d expect”.
The Department for Business and Trade has been asked to run a review of extra charges to “see how harmful it is”.
The Government will then decide whether it needs to “take further action” to regulate companies charging extra fees.
Known as ‘drip-pricing’, companies can charge customers far higher than the initial price they saw.
Budget airlines, including easyJet and Ryanair, charge passengers extra money to bring hand luggage or select a seat.
Baggage fees are also becoming more expensive with some tourists reporting costs of £70 to bring a bag on their flight.
Hotels are also guilty of the practice with some charging extra sums for essential services such as WIFI.
Ticketing sites are also under fire for charging customers transaction fees that aren’t visible on the initial booking.
Tourists booking accommodation on Airbnb will also find the price is higher than expected once the host’s cleaning fee is added to the final amount.