Hotel chains investigated for collusion
The UK’s competition regulator is probing three major hotel chains for suspected collusion for potential price fixing.
The Competition and Markets Authority (CMA) confirmed an investigation into Hilton, IHG Hotels & Resorts and Marriott International.
It claims they shared findings via hotel data analytics tool STR.
“Companies use various types of data analytics tools and algorithms to help them make commercial decisions. However, when rival businesses share competitively sensitive information, including through a third-party data analytics provider, this reduces the uncertainty competing businesses normally have about how each other will act,” the CMA said.
“This can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour.”
The CMA hasn’t made any determination about any laws een violated.
STR owner CoStar confirmed it is under investigation along with the hotel chains and is cooperating.
“We are happy to provide the CMA with assistance. We are surprised at the CMA’s interest in a long-standing hotel data analytics and benchmarking platform, which for decades has been used by companies and government entities alike,” it said.
“IHG will cooperate fully with the CMA’s inquiries. The CMA noted that no assumptions should be made about whether competition law has been infringed,” IHG said in a statement.
Two years ago CoStar was sued in the US for alleged collusion with hotel chains but the lawsuit was later dismissed.
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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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