Hotels in France are to be granted “unprecedented control” to dictate prices across all online channels from next month’s holiday peak period, it is being claimed.
Price parity, which allows online travel agents to have access to prices as low as those available on hotels’ own channels, is due to end when the French government commences implementing its proposed ‘Macron’ Bill in August.
The French Hotels Association claims the Bill will promote discounting of hotel rooms by ending price parity.
Instead the legislation gives hotels a “mandate” contract where they will control all pricing and availability for all online reservation platforms and OTA’s sales channels.
The European Technology and Travel Services Association describes this as “a licence for the hotels to increase prices,” which is being fast-tracked through the French legislature.
Christoph Klenner, secretary general of ETTSA, said: “There will be no price competition if hotels determine all prices.
“Hotels will unfairly favour their own channels for the lowest pricing and availability, which will substantially reduce competition and consumer choice.
“It will lead to higher prices as there are no incentives for hotels to discount if they can eliminate all competition across distribution channels.
Click to read full article: Travolution
