Glossary · Travel distribution
Drip pricing
Drip pricing is showing a low headline price and adding further charges as the customer moves through the purchase, so the total only becomes clear late in the process; the UK Competition and Markets Authority describes it as "when prices are added as consumers proceed with a transaction".
Reviewed 30 Oct 2026
Mandatory charges vs optional extras
| Mandatory charge | Optional extra | |
|---|---|---|
| Examples | Booking or service fees, resort fees, cleaning fees, unavoidable taxes | Checked bags, seat selection, insurance, upgrades |
| Customer can avoid it | No | Yes |
| Belongs in the headline total | Yes, under the rules below | No — shown and chosen separately |
A related practice, partitioned pricing, shows the components of a price without the overall total; the CMA describes it as "when component parts of a price are given, but the overall price a customer would pay is not".
How the rules treat it
- United Kingdom: the CMA's price transparency guidance (CMA209), first published on 18 November 2025 under the unfair commercial practices provisions of the Digital Markets, Competition and Consumers Act 2024, covers what pricing information must include, including mandatory fees, taxes and charges.
- United States: the FTC's Rule on Unfair or Deceptive Fees, effective 12 May 2025, covers live-event tickets and short-term lodging and requires the total price, including mandatory fees, to be shown more prominently than other pricing information.
- EU air fares: Article 23(1) of Regulation (EC) No 1008/2008 requires the final price to include unavoidable and foreseeable charges at all times, and optional supplements to be opt-in from the start of booking.
These are summaries of the texts, not legal advice.
Measuring drip pricing
Collect the price at two points for the same product, market and time: the headline on the search or listing page, and the total shown at the last step before any personal or payment details are required. Stop there; if the total only appears after personal data is entered, record that it was not visible. The difference, broken down by fee type, is the drip. Hotel fees are covered on hotel resort fees, currency surcharges on booking currency markups, and the rules in more depth in travel price transparency rules.
FAQ
Questions
Something not covered? Write to contact@arcproxies.io.
Is drip pricing illegal?
In several places, for mandatory charges, yes in effect: the UK requires mandatory fees in the price under the DMCC Act regime, the US FTC rule covers live-event tickets and short-term lodging, and EU air fares must show the final price including unavoidable charges. Scope and exceptions vary, so check specific cases with counsel.
Are hotel resort fees a form of drip pricing?
When a mandatory resort fee is left out of the headline price and added later, it is a classic example. The CMA's 2019 commitments with hotel booking sites already required compulsory charges such as resort fees in the headline price.
Is showing taxes separately drip pricing?
Itemising is not the problem; leaving the total out is. Showing a breakdown without the overall price is what the CMA calls partitioned pricing, while an inclusive total with an itemised breakdown beneath it is generally the expected presentation.
Are airline bag fees drip pricing?
Not when the bag is genuinely optional and its price is shown clearly. EU rules for air fares require optional supplements to be communicated at the start of booking and accepted on an opt-in basis.
Sources & review
Last reviewed by the ARC Proxies team. Prices are read from the live catalog at build time.
- [1]Competition and Markets Authority: Price transparency (CMA209)
- [2]Federal Trade Commission: Rule on Unfair or Deceptive Fees: Frequently Asked Questions
- [3]EUR-Lex: Regulation (EC) No 1008/2008 on common rules for the operation of air services in the Community
In practice