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Friday, July 10, 2015

France bans rate parity

France is to ban rate parity, after legislation outlawing the practice passed its third review by the French National Assembly yesterday.

Following confirmation from the French prime minister Manuel Valls (pictured), the legislation is expected to be adopted no later than today (10 July).

However, this new law contradicts commitments by the French Competition Authority accepted earlier this spring.

The commitments agreed between prominent online travel agents (OTAs) and the French Competition Authority included a provision that would allow for narrow rate parity, a condition that permits the OTA to restrict a hotel from offering lower public room rates on the hotel’s own website than the rates offered through the agent’s site. As a result, customers continue to see virtually the same price across all websites rather than a competitive marketplace with many sites competing with one another to offer the most attractive deal. Read More »

Wednesday, July 01, 2015

BHA slams 'restrictive' OTA rate parity agreements

The British Hospitality Association (BHA) has criticised ‘restrictive’ price fixing agreements set by online travel agents (OTA’s), and announced that it will continue to campaign to ban the terms.

The group's statement coincides with a commitment from prominent OTA Booking.com to roll out its new rate parity agreements in the UK and Europe on 1 July.

Under the commitment, hoteliers advertising rooms on the site will be able to offer lower prices and additional services through other OTA’s.

However, the hotels will be prevented from offering cheaper rates or better booking conditions through their own websites than those advertised on Booking.com.

Though Booking.com said the commitment was necessary for the site to remain ‘a cost-effective marketing channel for partners and deliver transparency, choice and great prices for consumers’, the BHA is arguing that such terms restrict freedom in the market. Read More »

Monday, June 29, 2015

Cutting tourism VAT could provide £20bn boost to UK

The campaign to Cut Tourism VAT has placed renewed pressure on the government after a study revealed that lowering the tax could be worth £20bn to the UK.
According to a report by Nevin Associates, cutting the rate of tourism VAT from 20 to five per cent would reduce the UK’s Balance of Trade deficit by £632m in year one, £1.1bn in year two, £1.5bn in year three and £20.1bn over 10 years, at 2015 prices. Read More »

Thursday, June 25, 2015

Booking.com to amend parity provisions throughout Europe

Since agreeing to the commitments with the French, Italian and Swedish NCAs, Booking.com announced its intent to implement these commitments throughout Europe. Under the new provisions, Booking.com will abandon its price, availability and booking conditions parity provisions with respect to other online travel agencies. -

See more at: http://hotelmarketing.com/index.php/content/article/booking.com_to_amend_parity_provisions_throughout_europe#sthash.61bLCBKQ.dpuf Read More »

Tuesday, June 02, 2015

ADR, not occupancy, drives RevPAR, study finds

GLOBAL REPORT—Price positioning plays a larger role in driving revenue per available room than does occupancy for European hotels, according to a recent study titled “Competitive hotel pricing in Europe: An exploration of strategic positioning."

Conducted by Cathy Enz, Linda Canina and Jean-Pierre van der Rest from Cornell University’s School for Hotel Administration, the study revealed that European hoteliers who maintained average rates above their competitive set generated higher revenue per available room, contradicting the long-standing belief that lowering rates will lead to more demand and better RevPAR. The research shows that although this practice yields higher occupancy, RevPAR normally suffers.

Researchers analyzed STR Global data over a 10-year period and the pricing strategies for more than 4,000 competitive hotels in Europe. (STR Global is a sister company of Hotel News Now.)
- See more at: http://www.hotelnewsnow.com/Article/15892/ADR-not-occupancy-drives-RevPAR-study-finds Read More »