Regulatory Scrutiny of Online Travel Platforms Could Shed New Light on Business Practices
Photo Credit: trivago Campus 2018: Facade with Hotel Search Logo The facade and logo outside Trivago An Australia court chastised Trivago about the way it displays hotel discounts. Pictured is Trivago Germany headquarters as seen in 2018. Trivago
Skift Take
Online travel companies have faced intense regulatory scrutiny almost since the first days of internet bookings. But "you've got mail" these days is less likely to be a cheery email notification than a demand for court appearances and audits.
Whether it's online travel companies like Trivago, Booking.com, or Airbnb, regulators around the world are lashing out at the business models of these companies and their competitors.
In two recent examples, the Australian Competition Commission disclosed that the country's federal court found that Germany's hotel-price comparison business Trivago was displaying hotel rates from the highest bidders in its auctions, and often hiding cheaper rates behind a "more deals from" list in violation of competition law. The court also took issue with the strike-through prices that inflated the discount consumers would receive.
In the UK, starting in September, sister companies Booking.com, Agoda, and Kayak, as well as some competitors, agreed to take certain steps to settle some of the competition authority's investigations over "pressure selling," which includes messaging on Booking.com's hotel pages such as "2 other people looked for your dates in the last 10 minutes."
The Australia Tr
