Australian competition watchdog concerned over OTA price parity demands
The power wielded by online travel agencies over Australian hoteliers is back in the spotlight.
The Australian competition watchdog has asked for feedback from hotels over OTAs’ controversial ‘price parity’ rules.
The online companies have rules stopping hotels from offering cheaper rates on their own websites, despite having to pay up to 15% commission for bookings made through OTAs.
The big two OTAs – Expedia and Priceline’s Booking.com now control about 80% of the online hotel booking market, following Expedia’s takeover of Wotif.
Accommodation Association of Australia chairman Richard Munro said price parity rules have been troubling the industry for some time and has come to a head after rises in OTA commissions following market consolidation.
"These were amplified when operators were recently notified the other dominant player in the market, Priceline would increase the commission rate that it charges accommodation operators from 12% to 15%," Munro said.
The Australian Competition and Consumer Commission has asked hoteliers to answer a questionnaire on its website to find out if price parity restricts hotels from offering a choice of prices on rooms based on extra services such as free Wi-Fi or late checkout.
"The consultation will assist the ACCC to broaden its understanding of the impact of volume and price parity clauses used by online travel agents, and how price parity clauses operate with last room availability clauses," the ACCC said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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