Hotel price fixing

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

tim

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

Greetings from Cologne

Andreas

"Andreas H. Zappel" wrote in message
...

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

----------------------------------------------------------------------------------

Reading up on it, the OFT have selected these companies as a test case. If
they win, I am sure that they will round up the rest

tim

"Martin" wrote in message
news
On Fri, 3 Aug 2012 08:26:44 +0100, "tim....."
wrote:

"Andreas H. Zappel" wrote in message
.. .

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

----------------------------------------------------------------------------------

Reading up on it, the OFT have selected these companies as a test case. If
they win, I am sure that they will round up the rest

and as a result hotel prices will increase.


--------------------------------------------------------------------------------------------

I'm afraid you'll have to explain that logic Cos I just don't see it.

Hotel rooms are the ultimate perishable product. They will always be
looking for ways to make sure that they sell 100%

tim

When they see martin arrive they double the price...


"Martin" a écrit dans le message de groupe de
discussion : ...
On Fri, 3 Aug 2012 16:29:31 +0100, "tim....."
wrote:

"Martin" wrote in message
news
On Fri, 3 Aug 2012 08:26:44 +0100, "tim....."
wrote:

"Andreas H. Zappel" wrote in message
...

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

----------------------------------------------------------------------------------

Reading up on it, the OFT have selected these companies as a test case.
If
they win, I am sure that they will round up the rest

and as a result hotel prices will increase.


--------------------------------------------------------------------------------------------

I'm afraid you'll have to explain that logic Cos I just don't see it.

Hotel rooms are the ultimate perishable product. They will always be
looking for ways to make sure that they sell 100%

Compare the price you are quoted at the reception, if you just turn up
against Expedia. Which is cheapest? Most receptions quote the maximum
price.
--

Martin

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

----------------------------------------------------------------------------------

Reading up on it, the OFT have selected these companies as a test case. If
they win, I am sure that they will round up the rest

In Germany HRS bought hotel.de some mounth ago and both systems
together are over 50% of the german market, so there was a injunction
against these two systems because of the rate parity in the contracts.

Greetings from Cologne

Andreas

Martin wrote:

Reading up on it, the OFT have selected these companies as a test case. If
they win, I am sure that they will round up the rest

and as a result hotel prices will increase.

Not really.
But a system with 25 or more % commission will show higher rates than
one with only 10 (no more system is taking these 10%) or 15%
commission.

Greetings from Cologne

Andreas

Martin wrote:

and as a result hotel prices will increase.


--------------------------------------------------------------------------------------------

I'm afraid you'll have to explain that logic Cos I just don't see it.

Hotel rooms are the ultimate perishable product. They will always be
looking for ways to make sure that they sell 100%

Compare the price you are quoted at the reception, if you just turn up
against Expedia. Which is cheapest? Most receptions quote the maximum
price.

The hotel reception get the rates from the local managment. The rates
in reservation systems are made from a regional or national sales
office.
Choose a individual hotel and the rate at the reception is the same or
better, because they don't need to pay the commission, than in the
reservation systems.

Greetings from Cologne

Andreas

"Martin" wrote in message
...

On Fri, 3 Aug 2012 16:29:31 +0100, "tim....."
wrote:

"Martin" wrote in message
news
On Fri, 3 Aug 2012 08:26:44 +0100, "tim....."
wrote:

"Andreas H. Zappel" wrote in message
. ..

"tim....." wrote:

Surprised no-one posted this:

http://www.bbc.co.uk/news/business-19060712

Quite how the "industry" thinks that this practice is legal under EU
competition law in beyond me. It is clearly not (whether it is
disadvantageous to the consumer is another matter).

And it's not only BOOKING and Expedia, you can find this rate parity
part in all contracts of the major reservation systems.

----------------------------------------------------------------------------------

Reading up on it, the OFT have selected these companies as a test case.
If
they win, I am sure that they will round up the rest

and as a result hotel prices will increase.


--------------------------------------------------------------------------------------------

I'm afraid you'll have to explain that logic Cos I just don't see it.

Hotel rooms are the ultimate perishable product. They will always be
looking for ways to make sure that they sell 100%

Compare the price you are quoted at the reception, if you just turn up
against Expedia. Which is cheapest? Most receptions quote the maximum
price.

-------------------------------------------------------------------------------

Yeah!

And what's that got to do with banning "no discounting" clauses in internet
reseller contracts.

tim

"Andreas H. Zappel" wrote in message
...

Martin wrote:

and as a result hotel prices will increase.


--------------------------------------------------------------------------------------------

I'm afraid you'll have to explain that logic Cos I just don't see it.

Hotel rooms are the ultimate perishable product. They will always be
looking for ways to make sure that they sell 100%

Compare the price you are quoted at the reception, if you just turn up
against Expedia. Which is cheapest? Most receptions quote the maximum
price.

The hotel reception get the rates from the local managment. The rates
in reservation systems are made from a regional or national sales
office.
Choose a individual hotel and the rate at the reception is the same or
better, because they don't need to pay the commission, than in the
reservation systems.

-----------------------------------------------------------------------------------------

Not my experience.

Turn up at the door and you're treated like a mug punter who will pay top
rack rate.

Go online and you will usually find the same room for much less.

(It's obvious really. If I'm online and I don't like the price it takes 20
seconds to find somewhere else. If I'm standing in the lobby I'm might to
have to spend another 60 minutes walking around looking for a better price)

tim