SINGAPORE: Online travel agency Agoda has made changes to its Singapore website and mobile application due to concerns about its “problematic features” raised by the Competition and Consumer Commission of Singapore (CCCS).
The features were related to Agoda’s accommodation search and booking services that may have misled consumers.
On Monday (Jun 16), the commission said: “Agoda has since voluntarily provided an undertaking and cooperated with CCCS to make changes to its website and mobile application to ensure that consumers get accurate and adequate information to consider before they make their purchases.”
In response to queries from CNA, CCCS said that it made its concerns known to Agoda towards the end of 2023 and that changes were “progressively implemented” since 2024.
“All issues highlighted by CCCS have since been rectified,” it added.
THE PROBLEMATIC FEATURES
In its news release, CCCS said that some of the misleading features included the use of countdown timers and the presentation and ranking of search results.
It listed five of them and what Agoda did to rectify them.
1. Agoda presented certain search results as “Best Match”, suggesting that such rankings were the most compatible results for its users based solely on their search criteria such as travel dates or the ratings of items listed. However, Agoda’s search results from its algorithm also took into account its potential earnings when generating these results.
The “best match” label has been replaced with “our picks”, which highlights that these results are recommended by Agoda.
2. The “Agoda Preferred” badge appeared alongside certain properties listed, indicating that these listings have “a long-standing relationship with Agoda and meet specific criteria”, making them “trusted and verified”. However, Agoda did not provide enough information about the criteria and failed to mention that businesses pay Agoda extra for this badge.
It has since updated its explanation to clarify that these properties do indeed pay more commission to get the badge.
3. The default ranking of search results could have led consumers to mistakenly believe that the listings were ordered solely based on their search criteria. However, as stated in Agoda’s terms of use, accommodation providers can increase their visibility by paying Agoda through its “Preferred Partner Program” or by sponsoring the listings.
Agoda has modified its explainer statement to clarify that the specific placement of these accommodations is influenced by various factors, including payments made to Agoda.
4. Accommodations with the “cheapest x-star stay label” were not always the lowest-priced options when the search results were sorted by price for the same star-rating. Consumers may mistakenly believe that a labelled accommodation is the cheapest choice available when it may not be.
The “cheapest x-stay” label has been removed to avoid confusion.
5. Consumers using Agoda’s website had a five-minute countdown timer while entering their details to finalise their accommodation booking. However, this could be extended to up to 20 minutes by clicking the “I need more time” button. The original five-minute time limit could create a false sense of urgency, prompting consumers to rush to confirm their booking.
The website’s countdown timer has now been standardised to match the mobile app’s time limit, increasing it from five to 20 minutes.
