Virgin Atlantic and Trainline investigated over drip pricing

The UK's Competition and Markets Authority (CMA) is investigating Virgin Atlantic, Trainline and RED Driving School over alleged drip pricing — the illegal practice of advertising headline prices without mandatory fees included upfront. Virgin Atlantic faces scrutiny over package holiday resort fees and local taxes that can add hundreds of pounds to a trip.

On 19 August 2026, the consumer watchdog said customers should pay the price they first see. The probe lands as households watch every pound and regulators gain stronger powers to act without going to court. For travellers and learners booking online, the cases could mean clearer pricing — or refunds and fines if firms are found to have broken the law.

Key Takeaways

• The CMA is investigating Virgin Atlantic, Trainline and RED Driving School for not showing full prices upfront.
• Hidden fees can range from 50p to £2.79 on Trainline tickets, hundreds of pounds on Virgin Atlantic holidays, and more than £7 per RED Driving School lesson.
• Since 2024 legislation, the CMA can fine firms or order compensation without a court case.
• Trainline shares fell 14% on the news; AA, BSM and StubHub UK have already been fined in related enforcement.
• All three companies say they are committed to transparency and will cooperate fully with the watchdog.

What is drip pricing and why is Virgin Atlantic being investigated?

Drip pricing refers to mandatory charges that are not included in the headline price shown to customers during online booking. The CMA considers it an illegal practice under consumer protection law when firms fail to disclose the total cost upfront.

Virgin Atlantic is being investigated over whether mandatory resort fees and local taxes were included in upfront prices for package holidays sold through Virgin Atlantic Holidays. The CMA said these fees vary but can reach hundreds of pounds, significantly increasing the total cost of a holiday beyond the advertised figure.

Trainline is under scrutiny after the CMA observed fees of up to £2.79 added to headline train fares and up to £1.50 for coach bookings. RED Driving School is being examined over whether mandatory booking fees and digital fees were shown upfront; those charges can exceed £7 per driving lesson.

This is not Trainline's first brush with fee transparency. In 2023, the Office of Rail and Road said it and six other third-party train ticket sellers were not being upfront about fees. Earlier in 2026, the CMA ordered two other driving schools to refund more than 80,000 customers who were not told the total price for lessons during online booking.

How much could hidden fees actually cost you?

On Trainline, the CMA observed additional fees ranging from 50p to £2.79 per transaction on train tickets and up to £1.50 on coach bookings. Regular commuters could see those small charges compound into meaningful annual spending.

For Virgin Atlantic holiday bookers, resort fees and local taxes can add hundreds of pounds to a package deal. Learner drivers using RED Driving School may encounter booking and digital fees of more than £7 per lesson, inflating the true cost of learning to drive beyond the advertised rate.

If the final checkout total differs from the first price you saw, that is exactly the behaviour regulators are now targeting. More guidance on protecting your wallet when booking travel and services appears in our Wealth Hacks & Passive Income hub.

What powers does the CMA have and what happens next?

Since last year, the CMA has been able to rule that consumer laws have been broken without taking businesses to court. That authority stems from the Digital Markets, Competition and Consumers Act 2024, which gave the regulator direct enforcement powers under consumer protection legislation.

Eight cases were opened in November 2025, and driving schools AA and BSM plus ticketing site StubHub UK have already been fined. If the CMA concludes Virgin Atlantic, Trainline or RED Driving School broke the law, it can impose fines of up to 10% of turnover or order firms to compensate affected customers.

For Trainline — the only listed company among those named — shares plunged 14% on Wednesday after the investigation was announced, according to The Guardian. The firm is also awaiting whether Great British Railways will launch a rival fee-free ticketing app.

Emma Cochrane, the CMA's executive director for consumer protection, said: "The first price customers see should be the price they pay. At a time when many households are watching every pound they spend, it is important that people are not surprised by extra fees when booking train and coach tickets, holidays or driving lessons."

What did the companies and consumer groups say?

A Virgin Atlantic Holidays spokesperson said the company takes its responsibility to customers "incredibly seriously" and that mandatory fees are indicated at multiple stages throughout the booking journey. "We are reviewing the points raised by the CMA carefully and will cooperate fully with its investigation," the spokesperson added.

Trainline said it is "committed to offering customers a transparent booking experience with clear pricing and genuine value" and had "proactively engaged with the CMA over several months." RED Driving School said it was disappointed at being included but takes obligations under consumer law "with utmost focus and seriousness."

Consumer rights group Which? welcomed the move. Sue Davies, head of consumer rights policy, said the CMA should not hesitate to use its enforcement powers, "especially after each firm has already received a warning advisory letter." She added that following comments by the Prime Minister that unfair pricing practices have no place in the economy, the investigation sends a clear message to other businesses.

Why should consumers care about the drip pricing crackdown?

At a time when household budgets are under strain, hidden fees erode trust and make comparison shopping harder. When the advertised price is not the price you pay, budgeting for travel, commuting and essential services like driving lessons becomes unreliable.

The CMA's consumer protection drive pre-dates the current government's arrival and aligns with a broader push against underhand pricing tactics. Putting household names such as Virgin Atlantic and Trainline in the spotlight sends a strong deterrent signal. For full details, see the BBC's reporting.

None of the three firms has been found to have broken the law yet — this is an investigation, not a ruling. But regulators now have faster, tougher tools, and businesses that drip-feed mandatory charges at checkout face real financial consequences. For anyone booking tickets, holidays or lessons online, the first price on screen may soon need to be the last price you pay.