31st Jan 2014 10:31
LONDON (Alliance News) - The UK's consumer protection regulator Friday said it has accepted formal commitments from hotels giant InterContinental Hotels Group PLC and online travel agents Booking.com and Expedia Inc. that it hopes will clear the way for wider availability of discounted hotel rooms and greater competition between online travel agents for room-only bookings.
The Office of Fair Trading had been investigating concerns that Booking.com and Expedia had each entered into separate agreements with Intercontinental which allegedly restricted each of the online agent's ability to discount the rates at which room-only hotel accommodation bookings are offered to consumers.
It said the commitments made by the three companies address these concerns by allowing more price competition between online agents and also between agents and hotels. The new agreements should also allow new online agents to enter the market or expand by offering attractive discounts.
Under the commitments, all online travel operators and hotels that deal with the three companies will be able to offer discounts on room-only rates as long as customers sign up to a membership scheme being run by the operators or hotels to be able to see the specific discounts. They must also make one undiscounted booking with the operator or hotel to be eligible for future discounts.
The OFT added that the discounts that are offered by the online operators will be funded through their commission or profit margins.
The regulator had launched its formal investigation back in 2012, and last December opened a consultation on its proposals. It said Friday that the investigation is now closed.
Intercontinental Hotels shares were down 1% at 1,964 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
InterContinental Hotels