CMA to examine new terms of OTAs

In light of the decision by the two prominent online travel agents (OTAs) to rollout new terms to all UK a hotels, the Competition and Markets Authority (CMA) has announced that it will examine these new terms.

This is a quickly changing area for hoteliers and has the potential to tremendously impact the way hotels communicate, market and sell rooms to guests.

Rate parity restricts hotels from offering lower public rates on their own website than they offer through the online travel agents who sell their rooms. A market without rate parity will benefit customers who will see greater competition and have the ability to shop around for the best hotel price between many online sales channels.

BHA legal and policy director said: "The BHA commends the CMA for considering the matter of narrow rate parity and rate parity in general. We look forward to their announcement of next steps in August and support action which will return competition to the online hotel booking market."

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