OTAs under the spotlight
By George Sell
Uploaded 01 November 2017
The UK Competition and Markets Authority's decision to investigate OTAs could potentially
be a real boost for independent hotels, if the CMA decides to get
tough on the practices it says it is concerned about.
Probably the most relevant issue is that of whether OTA rankings -
which are presented as being based on search preferences - are
actually linked to the amount of commission that an OTA receives
from a hotel operator. If this proves to be the case, then it means
the smaller operators are at the lower end of a distinctly unlevel
playing field. The 'narrow parity' clauses which restrict a hotel's
ability to offer a lower price on its own website than that offered
to the OTA is also a bone of contention.
There is also the possibility that the OTAs' reputation will be
damaged to the extent that some travellers, keen to avoid perceived
hidden charges and misleading rankings, will make the effort to
book their accommodation directly with the hotel - music to the
ears of owners and revenue managers across the land! We will watch
developments with interest.
