OFT clears discounted hotel rates for OTAs
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The Office of Fair Trading (OFT) has accepted commitments that allow Booking.com, Expedia and InterContinental Hotels Group (IHG) to offer discounted hotel rates.
The agreements mean all OTAs and hotels that deal with the three companies above will be able to offer savings on room-only rates if the customer is signed up to a membership scheme and makes one undiscounted booking before receiving future discounts.
Any savings will be offered by OTAs funded by commission or margins, with the OTA now expecting new online agents to enter the market or expand by offering discounts.
“The travel industry, fuelled by the internet, has seen significant changes in recent years, and we want to ensure those changes continue to work in consumers’ interests. That is why we are pleased to have secured this outcome which, by allowing OTAs and hotels to offer discounts, should increase competition and mean travellers across Europe can benefit from reductions on hotel accommodation throughout the UK,” said Ann Pope, senior director in the OFT’s services, infrastructure and public markets group. “By shopping around, people can compare the different discounts offered by hotels and OTAs, and ensure they get the best deal.”
A statement from Expedia said: “Expedia welcomes this development which allows us to focus on our long-standing commitment of driving global demand for hotels by providing the best online travel experience for consumers in terms of choice, value and functionality.”
The OFT has now closed its investigation, which started back in September 2010.
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