Increased competition between hotel booking platforms

4.25.2017

Competition between online hotel booking platforms appears to have increased after the change of their price clauses, says a new report by the European Competition Network.
by Jeppe Mejer Kjelgaard, Assistant Attorney

This is an update to our article "Online hotel booking platforms will be subject to continued strict monitoring" of 28 February 2017, available here, which explains the background to the European Competition Network's ("ECN") study of competition in the online hotel booking market.

The report shows the switch to narrow MFN clauses led to an increase in room price differentiation in eight of the ten analysed states. The report also shows, however, that 47% of the hotels were not aware that the booking portals had changed their MFN clauses. Of those that were aware of the changes, 60% said they had not changed their price policies.

The Danish Competition and Consumer Authority just issued a press release on the report, saying that the Authority will seek to increase hotels’ awareness of the possibility for negotiation under the changed clauses. Like the ECN, the Authority will reconsider the competition situation once hotels and booking portals have had time to make use of the possibilities already created.

Read the ECN report

Read the Danish Competition and Consumer Authority’s press release (in Danish)