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
Switzerland’s Competition Commission announced December 11 that it launched an investigation into the practices of the three online travel agencies, all of which sell hotel rooms in Switzerland.
Switzerland has followed in the footsteps of the UK and began a probe of the rate parity practices of several online travel agencies, including Booking.com, Expedia and Hotel Reservation Service.
Switzerland’s Competition Commission stated it suspects that the OTAs best-rate guarantees - Bestpreisgarantien - with hotels, and additional contract terms pertaining to room availability “could constitute illegal restraints.”
Under these rate parity rules, the OTAs require hotels to give them their lowest rates, and they are barred from offering discounted rates elsewhere, including on the hotels’ own websites.
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