France forbids rate parity clauses by law – HOTREC Reports

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HOTREC Reports (Click here for full story):

“The French decision allows hotels in France to set lower prices both on their online and offline direct distribution channels, than the rates available via intermediaries, thus putting an end to mandatory rate parity clauses.”

This decision, in essence, allows hoteliers in France to regain their entrepreneurial freedom and will be able to offer their customers any trade or tariff advantage they consider appropriate.

Interesting.  It seems that third party agencies, i.e., Booking.com and Expedia, had entered into agreements with hotels that limited the ability of hotels to control their pricing through dynamic yield management by limiting the hotel to offer prices to their customers lower that separately negotiated with the third parties.

Applying that logic to tee times, it would seem that golf courses, when dealing with a third party, should set floors (rate parity clauses) to control the prices that a third party is able to offer to the consumer.    Such limitations are currently not in place.

What do you think and what are the implications for the anti-trust laws in the US.  Comment below.

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