Categories: Business

“He has deceived the Spanish people for too long”

Ryanair is raising the tone against OTA (online travel agency) Edreams and asking the Ministry of Consumer Affairs to outlaw its “core” subscription service, through which the budget airline claims it is “defrauding and overcharging Spanish consumers”. The allegations are being made again by the company after being declared the “number 1 pirate OTA” a few weeks ago in April for allegedly charging consumers €25.24 more for an €8 reserved seat on the Ryanair website (hidden margin 216%). ), and for doing it twice for 10kg of luggage (€39.42 compared to €19.79 on Ryanair.com).

According to the Irish airline, Edreams Prime promises discounts on 100% of its flights, accommodations and car rentals, “but uses a combination of hidden profits and bogus airfare discounts to trick unsuspecting consumers into paying for an annual subscription (currently 64.99 Euro). ), although they continue to pay hidden profits to Edreams, so they do not receive any benefit from their subscription. And he adds that the OTA uses anti-consumer master contract terms that allow it to automatically renew and increase subscription fees without consumers’ explicit consent. “In fact, in its most recent financial reports, Edreams boasted to its investors that profitability of ‘premium’ members has been increasing since the second year and is the most important driver of profitability.”

The company recalls that in December last year it received a court order from Berlin District Courtwhich ruled that Edreams Prime is misleading with the word “discount” because it “may give the user the impression that they can receive benefits through their subscription that exceed the amount paid for the membership.”

Edrims denies this

In any case, these accusations are categorically denied. “Ryanair resorts to slander because it has no other arguments. Their anti-competitive and harassing DNA causes them to distort reality: we offer more competitive prices than they do, and they attack us because they don’t want travelers to have access to the variety and value proposition of their competitors,” an OTA spokesperson told the newspaper.

For the company, Ryanair’s insults are “lies” and they remember that the airline has already been condemned “for denigrating our brands.” “Ryanair must explain the reason why it feels outside the jurisdiction of the Spanish Supreme Court, which has already ordered an end to its anti-competitive and degrading behavior towards us,” explains the same representative.

Edrims claims that the “smear campaign” undertaken by the Irish airline is linked to the opening of an investigation by the Italian competition authority, “which accuses the airline of abusing its dominant position and denigrating travel agencies.” “As Edreams is an active participant in this process, it has become the target of increased attacks from Ryanair. “This behavior demonstrates the airline’s penchant for harassment and a consistent pattern of undermining competition through demeaning tactics rather than competing fairly,” the same sources said.

But Ryanair is not changing pace. “Edreams Prime has deceived and deceived Spanish consumers for too long. A Spanish citizen is tricked into paying an annual fee of €64.99 by promising discounts. But in reality, Edreams is overcharging Ryanair flights and extras,” says Ryanair marketing director Dara Brady. For this reason, the manager is asking Spain’s Consumer Affairs Minister Pablo Bustinduja to take “immediate action” against Edreams’ “deceptive marketing practices” and put an end to “fictitious discounts, hidden margins and a subscription model that lacks transparency.” “, which leads to automatic renewals and increases in tariffs without the consent of the consumer,” Brady adds.

Regulatory changes

The debate has been supported by the Spanish Consumer Association, which says it will convene both sides for a meeting to learn about the reality “first hand.” “We request the authorities with jurisdiction over consumer affairs to clarify what happened and impose sanctions if the complaint is finally substantiated.”

The organization regrets that Spanish consumer protection legislation “does not establish automatic compensation mechanisms for consumers” and believes that regulatory changes are needed to compensate for consumer overpayments. “This is a legal measure that exists in other countries, for example, in Mexico,” the organization clarifies.

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