IHG and agents ‘anti-competitive’
Customers of InterContinental Hotels Group and the travel agents Expedia and Booking.com risk being ripped off after Britain’s competition regulator alleged they had infringed competition law.
The Office for Fair Trading said it had taken the “provisional view” that the companies were behaving in an “anti-competitive” manner, saying deals struck between IHG and Expedia and Booking.com restricted those agents’ ability to discount room-only hotel accommodation.
These agreements could limit price competition between travel agents and hinder agents attempts to attract more customers by offering discounts, the OFT said.
OFT chief executive Clive Maxwell said: “We want people to benefit fully from being able to shop around online and get a better deal from discounters that are prepared to share their commission with customers.”
“The OFT’s provisional view is that Booking.com, Expedia and InterContinental Hotels Group have infringed competition law,” he added.
The OFT began a formal investigation in September 2010, following a complaint submitted by a small, online travel agent, alleging it was being prevented by various hotel chains from offering discounted sale prices for room-only hotel accommodation.
IHG said it considered its arrangements with the online booking agents to be compliant with competition laws and consistent with the long-standing approach of the global hotel industry.