6 top Paris hotels fined on price fixing

6 top Paris hotels fined on pricing

By Thomas Crampton International Herald Tribune
TUESDAY, NOVEMBER 29, 2005

PARIS In a five-star case of collusion, six of the most prestigious luxury
hotels in Paris were fined Monday for running an illegal price-fixing cartel
that at one point pushed their room prices - already among the highest in
the world - to an average of more than E700 per night.
*
The Hôtel de Crillon, the Four Seasons Hôtel George V, the Hôtel Ritz, the
Hôtel Plaza Athénée, the Hôtel Meurice, and Hôtel Le Bristol were fined a
total of E709,000, or $831,000, by the French Competition Council, which
issued a 57-page decision replete with e-mail trails and charts detailing
how the hotels worked together on a weekly and monthly basis to shift
prices.
*
"The investigation showed regular exchanges of confidential information
among the six hotels regarding their business and the elements necessary for
their marketing plans," the council, a government watchdog charged with
stopping market collusion, said in a statement.
*
The fines for the hotels, which are all ranked by the Michelin travel guides
at the highest level of luxury, five red stars, were levied in relation to
the earnings of the hotels and the length of time they had been involved in
price fixing.
*
They ranged from E248,000 for the Hôtel de Crillon to 55,000 for the Hôtel
Meurice.
*
The Hôtel George V was fined 115,000; the Hôtel Plaza Athénée, E106,000;
the Hôtel Ritz, E104,000; and Le Bristol, E81,000.
*
In the gold-festooned lobby of the Hôtel de Crillon, housed in a building
constructed for Louis XV on the Place de la Concorde in the middle of Paris,
the communications director declined to make any comment on the fines and
insisted that a reporter attempting to speak with guests leave the premises
immediately.
*
Room prices in the Crillon, which is owned by the Taittinger family, range
from 500 per night for a single room in low season to E8,080 per night for
the Bernstein suite, named after Leonard Bernstein, the late American
conductor and composer, who stayed there.
*
A frequent guest at the Hôtel Meurice, an opulent hotel that is owned by the
Brunei Investment Agency, said he was not surprised by the collusion.
*
"In this level of hotel you can always negotiate the level of prices
anyways," said Luc Janssen, a Belgian who stays at the hotel often.
*
Officials of the six hotels spent considerable time on e-mail and in
meetings exchanging information in a bid to fix prices, according to the
French investigator's report, which came from a four-year investigation of
allegations that were first raised in a broadcast by the French television
station M6.
*
"I have the pleasure here of sending you our results and await yours," a
sales coordinator at the George V, identified only as Madame X, said in an
e-mail dated Feb. 2, 2001, sent to counterparts at the Hôtel Ritz, the Hôtel
Plaza Athénée, the Hôtel Meurice, the Hôtel de Crillon and Le Bristol.
*
The e-mail included a chart showing levels of occupancy, average room prices
and revenue information for the previous December.
*
Employees from other hotels were quoted as sending similar e-mails.
*
A graph toward the end of the report detailed the rise and fall of average
room prices over two years, in which there appears to be little variation
between the hotels.
*
The French government report highlighted how the hotels dominate the luxury
hotel market in central Paris.
*
It described them as occupying "a prestigious site in the center Paris; a
high proportion of suites, some of which are exceptional; a gastronomic
restaurant; exceptional amenities such as swimming pools or gyms; a large
number of personnel at the disposal of guests."
*
As such, the report said, these hotels charge significantly more than the
next lesser tier of competitor.
*
*
*
James Kanter of the International Herald Tribune contributed to this
article.
*
*

On Tue, 29 Nov 2005 16:52:21 +0100, Earl Evleth
wrote:




6 top Paris hotels fined on pricing


Just looks like a normal way of doing business for the high flyers.

On 29/11/05 17:10, in article ,
"irwell" wrote:

6 top Paris hotels fined on pricing


Just looks like a normal way of doing business for the high flyers.

The hotels in France normally have their rates posted on a little sign
visible from the outside. I have not checked to see if the "palaces"
do the same thing but doubt it.

Next the prices are listed in the Michelin guide so one has a rough
idea of the price category of a particular place.

What happened in this case is that the hotel exchanged information and
set their prices variably.

Obviously the very rich might well not pay any attention to the prices.
A Saudi prince will have a secretary who arranges everything, he never
deals with the filthy stuff (money).

There is a story in the US OF J.P. Morgan, receiving a number of people
on his private boat was asked by one is his guests ----

"How much does a boat like this cost, I am thinking of buying a boat?

Morgan replied "If you ask how much is costs, you can't afford it".


Earl

Earl Evleth wrote:
On 29/11/05 17:10, in article ,
"irwell" wrote:


6 top Paris hotels fined on pricing


Just looks like a normal way of doing business for the high flyers.


The hotels in France normally have their rates posted on a little sign
visible from the outside. I have not checked to see if the "palaces"
do the same thing but doubt it.

Next the prices are listed in the Michelin guide so one has a rough
idea of the price category of a particular place.

What happened in this case is that the hotel exchanged information and
set their prices variably.

Obviously the very rich might well not pay any attention to the prices.
A Saudi prince will have a secretary who arranges everything, he never
deals with the filthy stuff (money).

There is a story in the US OF J.P. Morgan, receiving a number of people
on his private boat was asked by one is his guests ----

"How much does a boat like this cost, I am thinking of buying a boat?

Morgan replied "If you ask how much is costs, you can't afford it".


Earl




Can't help wondering what the situation in Cannes, Nice and Deauville is.

http://www.cannes-or-bust.com/

On 29/11/05 21:06, in article ,
"Michael" wrote:

Can't help wondering what the situation in Cannes, Nice and Deauville is.


Paris is unique in having 6 very high level hotels. In Nice the best
known one is the Negresco. In Cannes there are three but I could
not name them. Monte Carlo has the Hotel de Paris. There are others
but the one's that come to mind are a bit special, like the Ritz
in Paris.

I have never stayed in any of these. My wife had a client once
staying at the Ritz, in fact, the fees she charged that client
for considerable research work did not exceed a night's stay in the hotel!
They have people in the lobby who somehow know who does and does not
belong there. They will stop and ask you want, politely, when you come
in a look out of place. It is another world.

oh evleth reads the herald tribune

"Earl Evleth" a écrit dans le message de news:
...



6 top Paris hotels fined on pricing

By Thomas Crampton International Herald Tribune
TUESDAY, NOVEMBER 29, 2005

PARIS In a five-star case of collusion, six of the most prestigious luxury
hotels in Paris were fined Monday for running an illegal price-fixing
cartel
that at one point pushed their room prices - already among the highest in
the world - to an average of more than E700 per night.

The Hôtel de Crillon, the Four Seasons Hôtel George V, the Hôtel Ritz, the
Hôtel Plaza Athénée, the Hôtel Meurice, and Hôtel Le Bristol were fined a
total of E709,000, or $831,000, by the French Competition Council, which
issued a 57-page decision replete with e-mail trails and charts detailing
how the hotels worked together on a weekly and monthly basis to shift
prices.

"The investigation showed regular exchanges of confidential information
among the six hotels regarding their business and the elements necessary
for
their marketing plans," the council, a government watchdog charged with
stopping market collusion, said in a statement.

The fines for the hotels, which are all ranked by the Michelin travel
guides
at the highest level of luxury, five red stars, were levied in relation to
the earnings of the hotels and the length of time they had been involved
in
price fixing.

They ranged from E248,000 for the Hôtel de Crillon to 55,000 for the
Hôtel
Meurice.

The Hôtel George V was fined 115,000; the Hôtel Plaza Athénée, E106,000;
the Hôtel Ritz, E104,000; and Le Bristol, E81,000.

In the gold-festooned lobby of the Hôtel de Crillon, housed in a building
constructed for Louis XV on the Place de la Concorde in the middle of
Paris,
the communications director declined to make any comment on the fines and
insisted that a reporter attempting to speak with guests leave the
premises
immediately.

Room prices in the Crillon, which is owned by the Taittinger family, range
from 500 per night for a single room in low season to E8,080 per night
for
the Bernstein suite, named after Leonard Bernstein, the late American
conductor and composer, who stayed there.

A frequent guest at the Hôtel Meurice, an opulent hotel that is owned by
the
Brunei Investment Agency, said he was not surprised by the collusion.

"In this level of hotel you can always negotiate the level of prices
anyways," said Luc Janssen, a Belgian who stays at the hotel often.

Officials of the six hotels spent considerable time on e-mail and in
meetings exchanging information in a bid to fix prices, according to the
French investigator's report, which came from a four-year investigation of
allegations that were first raised in a broadcast by the French television
station M6.

"I have the pleasure here of sending you our results and await yours," a
sales coordinator at the George V, identified only as Madame X, said in an
e-mail dated Feb. 2, 2001, sent to counterparts at the Hôtel Ritz, the
Hôtel
Plaza Athénée, the Hôtel Meurice, the Hôtel de Crillon and Le Bristol.

The e-mail included a chart showing levels of occupancy, average room
prices
and revenue information for the previous December.

Employees from other hotels were quoted as sending similar e-mails.

A graph toward the end of the report detailed the rise and fall of average
room prices over two years, in which there appears to be little variation
between the hotels.

The French government report highlighted how the hotels dominate the
luxury
hotel market in central Paris.

It described them as occupying "a prestigious site in the center Paris; a
high proportion of suites, some of which are exceptional; a gastronomic
restaurant; exceptional amenities such as swimming pools or gyms; a large
number of personnel at the disposal of guests."

As such, the report said, these hotels charge significantly more than the
next lesser tier of competitor.



James Kanter of the International Herald Tribune contributed to this
article.

"Earl Evleth" a écrit dans le message de news:
...



6 top Paris hotels fined on pricing

By Thomas Crampton International Herald Tribune
TUESDAY, NOVEMBER 29, 2005

PARIS In a five-star case of collusion, six of the most prestigious luxury
hotels in Paris were fined Monday for running an illegal price-fixing
cartel
that at one point pushed their room prices - already among the highest in
the world - to an average of more than E700 per night.

The Hôtel de Crillon, the Four Seasons Hôtel George V, the Hôtel Ritz, the
Hôtel Plaza Athénée, the Hôtel Meurice, and Hôtel Le Bristol were fined a
total of E709,000, or $831,000, by the French Competition Council, which
issued a 57-page decision replete with e-mail trails and charts detailing
how the hotels worked together on a weekly and monthly basis to shift
prices.

The French Competition Council would have been better advised to use
taxpayer's money to investigate collusion among telephone companies, or
among internet service providers, or in the building industry, or water
distribution, etc.

But thanks to them, the jet-set won't have to sleep in the metro this
winter.

"Earl Evleth" wrote in message
...

Paris is unique in having 6 very high level hotels. In Nice the best
known one is the Negresco. In Cannes there are three

That'll be the Majestic, the Carlton and the Martinez.

Ian

"Earl Evleth" wrote in message
...

How typically arrogant of them to document the entire thing in
professionally haughty emails - as if they were above the law.

On Tue, 29 Nov 2005 21:42:50 +0100, Earl Evleth
wrote:

On 29/11/05 21:06, in article ,
"Michael" wrote:

Can't help wondering what the situation in Cannes, Nice and Deauville is.


Paris is unique in having 6 very high level hotels. In Nice the best
known one is the Negresco. In Cannes there are three but I could
not name them. Monte Carlo has the Hotel de Paris. There are others
but the one's that come to mind are a bit special, like the Ritz
in Paris.

I have never stayed in any of these. My wife had a client once
staying at the Ritz, in fact, the fees she charged that client
for considerable research work did not exceed a night's stay in the hotel!
They have people in the lobby who somehow know who does and does not
belong there. They will stop and ask you want, politely, when you come
in a look out of place. It is another world.

You can get away with ordering an omelette in the restaurants
of most of the Grand Hotels. They still give the same high class
service with all the incidentals, the bill is higher than you would
see at the local bar, but the experience maybe worth it.
Tried at the Grande Bretagne in Athens, The Savoy in London,
The Carlton in Cannes. Next time in Paris may try the Ritz or
The Lutetia.