hospitalitytoday.com | 39
OFT ‘clears way’ for OTA
discounts on room rates
The Office of Fair Trading (OFT) has “accepted formal commitments” from two of
the UK’s largest online travel agents (OTAs) Booking.com and Expedia, together with
InterContinental Hotels Group plc (IHG), which will enable OTAs and hotels to offer
discounts on rates for hotel rooms.
The commitments, lasting two years, mean that all OTAs and hotels that deal with
these three businesses will be able to offer discounts off headline room-only rates so
long as customers:
new online agents to enter the market or
sign up to the membership scheme
expand by offering attractive discounts.
of an OTA or hotel to be able to view
Following acceptance of the
specific discounts, and
commitments, the OFT has now closed its
make one undiscounted booking with
investigation.
the OTA or hotel in question to be
Ann Pope, Senior Director in the OFT’s
eligible for future discounts.
Services, Infrastructure and Public
The discounts offered by OTAs will be
Markets Group, said:
funded through their commission or
‘The travel industry, fuelled by the internet,
margins.
has seen significant changes in recent
The OFT’s investigation centred on
years, and we want to ensure those changes
competition concerns that Booking.com
continue to work in consumers’ interests.
and Expedia each entered into separate
That is why we are pleased to have secured
agreements with IHG which restricted
this outcome which, by allowing OTAs and
each OTA’s ability to discount the rates at
hotels to offer discounts, should increase
which room-only hotel accommodation
competition and mean travellers across
bookings are offered to consumers.
Europe can benefit from reductions on hotel
The commitments address these
accommodation throughout the UK. By
concerns by allowing greater competition
shopping around, people can compare the
on price between OTAs, and also between
different discounts offered by hotels and
OTAs and hotels. They should also enable
OTAs, and ensure they get the best deal.”
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