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Hotels, OTAs win antitrust court verdict
A US district judge has thrown out a consumer antitrust lawsuit claiming collusion and price-fixing by hotel chains and online travel agents.
The Dallas judge found that the action by a group of consumers from several states did not sufficiently show that a conspiracy existed between the hotels and OTAs.
The companies defending the action included Starwood Hotels and Resorts, InterContinental Hotels Marriott International, Expedia, Orbitz and Priceline.
The lawsuit claimed that each hotel group signed deals with OTAs to publish a lowest available rate while also agreeing not to undercut competitors, forcing travelers to pay artificially high prices.
Judge Jane Boyle said the "rational business interests of the companies can be recast in a suspicious light but it does not mean the allegations actually suggest a conspiracy."
An Orbitz spokeswoman said the judge’s decision was "well reasoned and accurately interprets applicable law."
Last week results of a survey by UK-based hospitality marketing firm umi Digital showed that 87% of independent accommodation businesses said OTA and other third-party commission levels are too high and should be capped.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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