Australia’s consumer watchdog has struck a deal with online Travel Agents, that will allow accommodation providers to offer lower rates than those available on online booking sites.
The arrangement came after an investigation by the Australian Competition and Consumer Commission (ACCC) into parity clauses that were preventing hoteliers from beating prices advertised on online platforms.
ACCC Chairman Rod Sims said the clauses were “anti-competitive” and stopped consumers from “getting different prices from competing online sites”.
As a result, sites likes Expedia and Booking.com have agreed to amend the parity clause and allow hoteliers to be more competitive.
However, there’s a catch. Hotels can only offer lower rates through telephone bookings and walk-ins as well as through special rates and deals through loyalty programs.
Hotels can also offer discounts on their website, but they still can’t under cut rates on online travel sites.
Australia’s peak accommodation organisation, Tourism Accommodation Australia (TAA), said the decision to prohibit hotels from offering lower rates online “lessened competition and was detrimental to hotels and travellers”.
TAA Chief Executive, Carol Giuseppi, said the agreement “doesn’t go far enough to protect hotels and consumers” and believes the ACCC should have “insisted that OTAs allow hotels to set their own rates online”.
“Hotels will only be able to offer cheaper prices than an OTA over the phone, over the counter or via a loyalty club.”
Carol Giuseppi, TAA Chief Executive
“Smaller hotels in particular feel very vulnerable to the power of the global OTA duopoly.
“The ACCC needs to send a stronger message to these two global giants to ensure travellers’ interests are protected.
