Online Travel Agencies (OTAs)

Enforcement Action Against OTAs 'Does Not Go Far Enough' - Travel Weekly

Woman standing near window inside hotel room - Photo by Eunice Stahl on Unsplash
Enforcement Action Against OTAs 'Does Not Go Far Enough'

Excerpt from Travel Weekly

Industry figures have welcomed the Competition and Markets Authority (CMA) enforcement action against major online travel agents on hotel bookings but said it does not go far enough.

But Bed & Breakfast Association chairman David Weston said the CMA had failed to address a key complaint on ‘rate parity’ clauses.

He said: “Rate-parity clauses in contracts prevent accommodation owners discounting their own prices to their own customers on their own sites. The OTAs demand commission – typically 15%‑20% – and insist the B&B or hotel charge the commission-inclusive price to customers even when no commission is payable.”

Weston said: “We asked the CMA to ban rate-parity clauses in the UK, as they have been in France, Italy, Austria and Germany.”

Trailfinders chief executive Toby Kelly complained the CMA had missed “the most-salient point”. He said: “A large OTA recently ran a campaign making a virtue of booking a flight and hotel separately. This deprives the traveller of protection.”

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