Italy Investigates easyJet Baggage Pricing Practices

Italy’s competition authority, the AGCM, has launched a formal investigation into easyJet concerning its baggage pricing and booking defaults. This probe focuses on how the airline presents add-on costs to customers, particularly for round-trip flights, and whether these practices may mislead passengers into paying more than intended. The investigation is examining allegations that bundled baggage options were set as the default for round trips, potentially inflating the perceived cost for travelers who only needed luggage for one leg of their journey.

The AGCM’s concern is not solely about the price of baggage itself, but rather how these costs are displayed during the booking process. Regulators are scrutinizing whether default settings and average price displays steer customers toward purchasing extras they might not need. This approach aims to ensure that consumers have a clear understanding of the total cost of their travel before committing to a purchase.

Default Baggage Options Under Scrutiny

A key aspect of the AGCM’s investigation centers on easyJet’s practice of making bundled checked baggage and sports equipment the default option for round-trip bookings. According to the authority, passengers who only required luggage for one direction of their travel had to actively interrupt the booking process to change this default setting. This design choice is at the heart of the case, as it may pressure customers into paying for services they do not intend to use.

The AGCM is examining whether this default setting, combined with the display of an average price for baggage, could mislead customers about the true cost for each segment of their journey. When a single average price is shown for a round trip, it can obscure the fact that the cost for outbound and inbound baggage might differ. This lack of clarity can make it difficult for passengers to accurately assess whether the added cost of baggage is justified for their specific travel needs.

Ancillary Revenue and Transparency Concerns

The investigation into easyJet’s baggage pricing practices highlights a broader regulatory focus on ancillary revenue within the airline industry. Ancillary revenue refers to the income airlines generate from services beyond the base ticket fare, such as baggage fees, seat selection, and priority boarding. Increasingly, consumer protection agencies are examining whether booking systems clearly present the full cost of these extras before a customer finalizes their purchase.

The AGCM’s probe into easyJet is specifically looking at how baggage charges are presented, whether default options encourage customers to buy more than necessary, and if average price displays obscure the actual cost of baggage on each leg of a round trip. This scrutiny is intended to ensure that airline pricing practices are transparent and do not distort consumer choice or mislead buyers about product features and costs.

Comparison to UK Advertising Standards Authority Ruling

Italy’s investigation into easyJet’s booking practices follows a separate ruling by the UK’s Advertising Standards Authority (ASA). The ASA had previously banned easyJet from using the wording “from GBP5.99” for large cabin bags in its marketing. This UK ruling focused on whether the advertised price was verifiable across a range of routes and dates, finding that easyJet lacked sufficient evidence to support the claim.

While both the AGCM and the ASA are scrutinizing easyJet’s commercial practices, their focus differs. The ASA’s concern was with a specific advertising claim and its verifiability. In contrast, the AGCM is examining the design of the booking process itself, including default options and the display of fare components, to determine if these practices mislead passengers about the actual cost of travel. The ASA ruling found that the lowest price for a large cabin bag among 520 easyJet flights was GBP23.49, with an average of GBP30, indicating a significant difference from the advertised “from GBP5.99” claim.

Potential Impact on Booking and Pricing

The AGCM’s investigation could lead to changes in how easyJet presents baggage and sports equipment options to customers. If the authority finds that the airline’s practices are unfair or misleading, easyJet may be required to adjust its booking flow. This could involve clearer separation of outbound and inbound baggage choices and a reduced reliance on preselected bundles.

Any adjustments to the booking process would also affect how easyJet frames its overall fares. A simpler system for choosing baggage options for one-way or round trips could make it easier for passengers to compare the base ticket price with the true total cost of their travel before making a payment. The core issue being examined is whether customers perceive baggage options as genuine choices or as preloaded costs that require extra effort to remove.

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