Intercontinental/Holiday Inn to allow lower hotel prices at online agencies
InterContinental Hotels Group today struck a compromise with the British Office of Fair Trade, which had accused the world’s largest hotel group of limiting competition on online hotel rooms.
OFT last year charged that the parent of Holiday Inn and Crowne Plaza, with the most hotel rooms in the world, forced online travel agents like Expedia and Priceline to agree not to cut their own commissions in order to reduce hotel-room prices.
The case was in response to a complaint from Skoosh.com, which complained that a number of hotel chains were preventing it from offering discounted prices on room-only bookings.
The case against IHG is considered a test case of the legality of hotels’ efforts to keep online travel agencies and web sites from undercutting their prices. All the major chains now advertise that their websites offer the lowest possible rates; allowing other sites to undercut them likely will cut traffic and bookings on hotels’ own sites.
The compromise IHG proposed would allow the sites to cut prices for just certain types of customers, such as those enrolled in a website’s frequent-traveler program or return customers.
IHG said it has worked closely with the OFT to bring an end to the investigation without having to admit to wrongdoing or pay a fine.
The agreement is open to consultation until September 13.
Cheryl
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