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In 2010, the UK's Office of Fair Trading launched an investigation into allegations of resale price maintenance in the hotel sector, amidst a rise in online bookings. Hotels began imposing minimum resale prices on websites like skoosh.com, compelling them to either increase room rates or exclude certain hotels from their listings. This tactic raises concerns about fair competition and consumer choice in the hotel industry. The implications of these practices on both distributors and consumers warrant careful examination as online sales continue to grow.
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Retail price maintenance 6A Jade Ho (17) Natalie Hui (18)
Summary of the news • In 2010, UK’s Office of Fair Trading investigate allegations of resale price maintenance in the hotel industry
Nowadays, the sale of hotel rooms over the internet has become popular • The hotels have been forcing those websites (in this case, skoosh.com) to set the price at the “cheapest” minimum resale prices
Skoosh.com either have to raise prices or take the hotels off their list You have to set according to our suggested price! Otherwise, we’re not supplying rooms to you! Hotels Skoosh.com (hotel rooms retailing website)
Effects Under resale price maintenance, hotels themselves imposed a minimum price on online hotel room sales
