CMA Cracks Down on Virgin Atlantic, Trainline Over Hidden Holiday and Travel Fees

Originally published on August 19, 2026 | Last updated on August 19, 2026

CMA Cracks Down on Virgin Atlantic, Trainline and RED Driving School Over Hidden Fees, as UK Regulator Cracks Down on Holiday, Travel and Driving Lesson Pricing

LONDON — The Competition and Markets Authority has opened formal investigations into Virgin Atlantic Holidays, Trainline and RED Driving School over concerns that customers may not have been shown the full cost of purchases at the start of the booking process.

The investigations are part of the U.K. competition regulator’s broader campaign against so-called “drip pricing,” in which mandatory charges are disclosed only after customers have begun a transaction. The CMA said the practice can leave consumers facing unexpected costs and make it more difficult to compare competing offers accurately.

Under U.K. consumer protection rules, businesses are expected to make unavoidable fees, taxes and other mandatory charges clear in the total price presented to customers. The CMA’s guidance says concealing such costs until later in an online purchase can constitute a breach of the law.

The latest investigations cover three different areas of consumer spending: package holidays, rail and coach tickets, and driving lessons.

Virgin Atlantic holiday fees under scrutiny

The CMA is examining whether Virgin Atlantic Holidays included mandatory resort fees and local taxes in the prices initially displayed to customers booking package holidays.

Resort fees are particularly common at hotels and resorts in destinations including the United States. They can cover services and amenities such as Wi-Fi, pools or fitness facilities and can vary according to the hotel, room and travel dates. Local taxes can also be charged separately at the destination.

Virgin Atlantic’s own holiday information says some hotels charge resort fees and local taxes that may not be included in the initial price. The company says customers are informed of additional charges before confirming a booking.

The CMA is now assessing whether the way those charges were presented complied with consumer protection requirements.

A Virgin Atlantic Holidays spokesperson said the company takes its responsibilities to customers seriously and wants travelers to have enough information to make informed decisions. The company said mandatory fees are identified at several stages of the booking process and that it is reviewing the CMA’s concerns and will cooperate with the investigation.

The regulator stressed that the investigation is at an early stage. It has not concluded that Virgin Atlantic or either of the other companies has broken the law.

Trainline faces investigation over ticket fees

Trainline is being investigated over the presentation of mandatory fees on its website and app when customers buy train and coach tickets in advance.

The CMA observed booking fees ranging from 59 pence to £2.79 for rail journeys, while coach bookings involved a £1.50 booking fee. Although the individual charges may appear modest, they can become significant for people who make frequent journeys.

Trainline’s published fee information confirms that, for most U.K. journeys booked through its platform, a booking fee applies, with the amount varying according to factors including the journey, ticket price and booking time. The company says the fee ranges from 59 pence to £2.79.

The CMA’s concern is not simply whether a fee exists but whether consumers are shown the full mandatory cost clearly enough at the appropriate point in the purchasing process.

The issue has wider significance for online ticketing. The Office of Rail and Road previously raised concerns about the transparency of fees charged by online rail ticket retailers, including Trainline. Following engagement with retailers, the regulator said companies had made changes intended to improve how fees were displayed and incorporate them into total prices earlier in the booking process.

RED Driving School also investigated

The third investigation concerns RED Driving School and the way it displays mandatory booking and digital fees when customers arrange driving lessons.

The case follows previous CMA action against other driving schools over similar pricing practices.

In April, the CMA ordered AA Driving School and BSM Driving School to refund more than £760,000 to more than 80,000 customers and imposed a £4.2 million fine after finding that a mandatory £3 booking fee had not been included in the initial price shown to customers.

That earlier enforcement action illustrates the potential consequences of the regulator’s strengthened powers.

CMA Cracks Down on Virgin Atlantic: Stronger enforcement powers

The CMA’s latest investigations come after the regulator received new consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024.

The powers, which came into effect in April 2025, allow the CMA to determine certain breaches of consumer law directly rather than relying on court proceedings. The regulator can impose fines of up to 10% of a company’s global turnover and can require businesses to provide compensation or refunds to affected consumers.

The CMA launched a major consumer protection campaign in November 2025, initially opening investigations into eight businesses and sending advisory letters to about 100 companies across 14 sectors. The initiative focused on pricing practices including drip pricing and other sales tactics that could mislead consumers.

Since receiving its enhanced powers, the regulator says it has secured more than £1.95 million in refunds for consumers.

The CMA has already demonstrated that it is prepared to use those powers. In June, it said StubHub UK would refund more than 51,000 customers and pay a penalty of nearly £900,000 after an investigation found mandatory ticket fees had been added at the final stage of purchases rather than included in the initial price.

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CMA warns businesses over hidden charges

Emma Cochrane, the CMA’s executive director for consumer protection, said transparent pricing is particularly important while households remain under pressure to control their spending.

She said consumers should not have to discover unavoidable charges only after beginning a purchase or calculate the real cost themselves.

The regulator also argues that drip pricing can harm competition. A company that advertises a lower headline price while adding compulsory charges later can appear cheaper than rivals even when the final prices are similar or higher.

That can influence which business a consumer chooses before the full cost becomes clear.

The CMA’s investigations into Virgin Atlantic Holidays, Trainline and RED Driving School are therefore examining more than the size of individual fees. They will assess whether consumers were given sufficiently clear and complete information to make meaningful comparisons before committing to a purchase.

All three businesses have been put on notice through advisory action, but the formal investigations do not amount to findings of wrongdoing.

If the CMA ultimately determines that any of the companies breached consumer law, it could require compensation for affected customers and impose financial penalties.

For consumers, the regulator’s message is straightforward: the price advertised at the beginning of a transaction should accurately reflect the unavoidable amount they will have to pay.

The investigations are expected to add to the CMA’s expanding scrutiny of online pricing as it seeks to make mandatory charges more visible and prevent businesses from gaining a competitive advantage through prices that appear lower than their true cost.

Sources and Further Readings: Competition and Markets Authority price-transparency guidance; Reuters report on the latest investigations

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