Published on Tuesday, April 26, 2011

Major hotel brands suspected of online price fixing



 

Three major hotel chains have come under scrutiny after a national newspaper claims it has seen evidence that they are price fixing with online travel agents.
 
Radisson, Thistle and Starwood were named by the paper as the groups supposedly colluding with OTAs.
 
An Office of Fair Trading investigation began last year into the possibility that hotel groups were stopping agents from discounting on rooms.
 
The investigation was kicked off by complaints from an online retailer claiming that it was told that if it discounted below a certain rate it would not be able to sell rooms in the future.
 
The Telegraph say it has seen documents that show Radisson, Thistle and Starwood are involved in the investigation.
 
The OFT says the enquiry is still at its early stages but was “an administrative priority”.


 



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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.

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