June 26, 2017
Expedia loses hotel rate parity case in France
Expedia has been fined €1 million by a French court and ordered to cease demanding “tariff parity” from hotels following an appeal brought by the government in Paris.Read more
The study found that continuous rate auditing is rare among corporates - only 2 percent check rates weekly. And when errors are uncovered, the average difference between the negotiated rate and the rate that is loaded into the GDS is 13% - most often, the error benefits the hotel.
A larger 22 percent audit the rates every couple months. Thirty-three percent check only once, when rates are loaded. "Anyone who deals with a hotel program knows that that's not when rate complaints stop," said HRS head of corporate sourcing for the Americas Jeff Hillenmayer.
GBTA research manager Kate Vasiloff said that before conducting the survey, GBTA had no real sense of how and how often programs were conducting audits, "not even a finger in the air sense," she said. "It really depended on who you talked to, how mature their programs were. There are just too many factors."
Of the 13.5 percent of travel managers who don't audit hotel rates, 27 percent don't think it has a significant impact on their hotel rates, so it's not a priority. "Not only are people not doing this," Vasiloff said, "part of the reason they're not doing this is they don't think it's important enough; they don't realize how much money they're leaving on the table."
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