Hotel Price Fixing: Avoid It By Using BestTravelCoupon.com

Aug 22, 2012 by     No Comments    Posted under: Blog

New lawsuit filed about a possible “price fixing” issue with many of the largest travel sites and hotels.  You can avoid it…just use our travel search engine at BestTravelCoupon.com.    Keep in mind, we search many of the small sites to find the deals for you.

Here are some details on the lawsuit that was filed in late August, 2012.

On MSNBC.com they wrote the large travel sites created agreements to restrict competition from smaller travel booking websites. According to MSNBC,

The agreements, drawn up in meetings and during industry conferences, were designed to combat mounting competition from smaller online retailers that sold rooms more cheaply, according to the complaint.

It was described as on q13.fox.com as:

“The alleged price-fixing is intended, according to the lawsuit, to stifle emerging competition from smaller, third-party online retailers. Many smaller online hotel retailers have offered lower rates through an emerging wholesale model. Through the new model, online retailers buy hotel rooms in bulk at the last minute at cheaper cost, and pass the savings on to consumers. Larger and more established travel sites use the traditional model of purchasing individual rooms from the hotel at a negotiated rate.

The emerging wholesale model, according to the lawsuit, has driven established travel sites to negotiate with hotels not to sell rooms below a certain rate, even in bulk or in the final minutes of sale.”

On Marketplace.org they have some comments from the attorney who represents the plaintiffs.   The attorney claims Expedia has admitted to similar activity in Europe and there is an ongoing case in England.   Attorney Steve Berman said:

“In Europe, Expedia has already admitted that it engaged in illegal behavior and is cooperating with the authorities in exchange for leniency.”

In July of 2012, the UK regulator known as The Office of Fair Trading cited many travel sites including Expedia.com, Booking.com and others in its investigation into fixing hotel rates and unfair agreements.  The UK regulator called the practices “anti-competitive” and said these agreements limited price competition between agencies.

You can read about it here: Hotel Price Fixing In Europe

In the article on Marketplace.org, CEO Dorian Harris of hotel booking site skoosh.com (one of the websites our travel search engine uses on BestTravelCoupon), said he experienced pressure from hotels to increase rates. Here is the excerpt from the article:

How does the alleged price-fixing work? Dorian Harris runs a discount hotel booking agency called Skoosh. Companies like his buy hotel rooms from wholesalers at a discount. But when Harris tried to pass along that discount to consumers, hotels contacted his company and pressured it to raise rates.

Dorian Harris: They would say to us, ‘We’re selling at a hundred. Expedia is selling at a hundred. You either see us at a hundred or not at all.’

How to counter any price fixing?  Utilize the free “TRAVEL SEARCH ENGINE” at BestTravelCoupon.com.

 

How To Use Our Site?

It’s easy…

BESTTRAVELCOUPON.com is a travel search engine that allows users to instantly search a broad range of travel sites for discount rates on hotels and flights. Not only are the larger sites such as Expedia.com and Priceline.com searched but also 100+ smaller travel sites. By allowing these searches we make it easy for consumers to shop for the lowest rates.

To search 100s of travel sites for the best hotel rates just click here:  Search For The Best Hotel Rates

 

 

To see our proven results: We have run a number of price comparison tests and posted them on our blog.  We have a list of them below.  However, we would like to encourage you to do your own testing.   Enter your search on our site.  Get the best rates.  After that go to your favorite travel site and compare.

Just remember our posted rates include all taxes and fees.  No hidden fees here.  Be sure to compare our final price with the total cost you see on the other travel sites.  If you do….you’ll see how we can save money and time for you on your next search for travel deals.

Proven Results: Click below for some price comparisons:

Give us a shot the next time you need to travel.  You’ll be glad you did.

Are you on Facebook?

Visit us here:  www.Facebook.com/TravelSearchEngine

 

Here are the links to more articles on the subject:

MSNBC: http://www.msnbc.msn.com/id/48732945#.UDUgX9VQKSp
Q13FOX: http://www.q13fox.com/news/kcpq-classaction-lawsuit-filed-against-expedia-other-online-travel-services-20120821,0,1360248.story
MARKETPLACE.org: http://www.marketplace.org/topics/business/hotels-and-online-travel-sites-sued-price-fixing

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