Duff on Hospitality Law

This week’s Update features a variety of topics, including Italy’s newly announced investigation of Booking.com, American’s ongoing battle with ASTA and Qantas’ new TMC portal:

• • Italy Launches Investigation of Booking.com.  Just weeks ago, Booking Holdings announced as part of its fourth quarterly earnings release that Spanish competition authorities were considering levying an unprecedented $530 million fine against its Booking.com platform.  Now, Italy is joining the fray.  On Friday, the Italian Competition Authority announced that it had opened an investigation into Booking.com and its alleged abuse of its dominant market position.  At issue are the alleged advantages given to hotels that participate in Booking’s Preferred Program in exchange for higher commissions and Booking’s automated price matching tool (the so-called “Booking Sponsored Benefit”).   According to the Authority, the two practices could have the effect of excluding competing online travel agents from the market.  The investigation was triggered by complaints from Italian hotel associations. 
  • ASTA Launches PR Campaign Against American Airlines.  As the war between ASTA (American Society of Travel Advisors) and American continues over American’s campaign to transition advisors to NDC (and thereby reduce overall distribution costs), ASTA has taken its position to lawmakers and the public via a new ad campaign and consumer-facing website.  New ads running in Politico direct readers to ASTA’s new website, which includes messages for both travelers and travel advisors and encourages both groups to contact their legislators.  Both sections also encourage a congressional investigation into American.   
  • Concur Travel Expands Hotel Offerings.  This past week Concur SAP announced that it was making several changes to its booking and travel management platform, Concur Travel.   The changes include expanded hotel content (via new integrations with Amex GBT, CWT, Flight Centre and HRS), rail content, emissions data (hotels, air, rail and rental car options) and itinerary sharing.  
  • Qantas Launches New TMC Booking Platform.  Travel management companies and agencies have a new platform (Qantas Distribution Platform) for booking Qantas flights using NDC content.  Access to the platform is limited to TMCs that have an existing commercial agreement with Qantas and are connected to one of Qantas certified technological partners, including Sabre, Travelport and Amadeus.  Users of the platform will have access to special offers, discount pricing and shopping capabilities not otherwise available through traditional channels.  According to the Qantas website, the new portal is best “suited for simple bookings” with complex customers and system requirements best supported through Qantas’ certified technology partners.  Sounds like a statement intended to calm Qantas’ legacy GDS partners’ concerns as Qantas seeks to move customers to a new alternative platform.