Duff on Hospitality Law

This week’s Update features two anti-trust / competition law updates from the EU (the Netherlands) and South America (Chile).  Enjoy.

• • Google Offers Price Guarantee.  Late last week, Google announced it was re-launching a pilot program to guarantee the prices of select U.S. flights; if travelers find a lower airfare prior departure, Google will refund them the difference.  Google piloted a similar limited guarantee in 2019, but ultimately terminated the pilot with the arrival of COVID.  For those flights that benefit from the guarantee, Google monitors the price of the flight until the scheduled departure.  If the price does drop, Google refunds the traveler the difference in Google Pay that can be used for other online purchases or ultimately refunded.  Refunds are capped annually at $500 for up to three guaranteed bookings. 
    
    
  • Chilean Authorities to Examine Online Platforms in Travel Industry.  The Chilean competition authority announced last week its plan to launch a detailed study of the hospitality industry, including  online digital platforms that advertise and facilitate the booking of accommodations.  According to the authority, a preliminary survey of the market found it necessary to examine whether the existing regulatory structure was adequate to ensure competition.  The study is expected to be complete in December, with a final report issued in March 2024. 
    
    
  • Dutch Court Releases Decision Referring Booking.com’s Contract Clauses to Full EU Court.  Readers will recall the significance of this case and the Dutch’s court’s decision to refer the case to the higher EU Court.  At stake are not only Booking.com’s contractual parity provisions, but more importantly, the correct methodology to be used when defining the online travel market.  If the market is narrowly defined (i.e., online sellers of travel products and services only), then Booking.com most certainly will be determined to have a large share of the market and likely subject to greater anti-trust scrutiny (including the Digital Markets Act (DMA)).  Although the linked decision is entirely in Dutch, it contains English commentaries throughout.
    
    
  • Yet Another Story on the Growing Influence of Social Media in Travel Marketing.  Ten thousand dollars ($10,000) a month and a $7500 travel allowance to travel the world and stay at Blueground’s U.S. and European properties, sign me up.  I think I’d make a great travel influencer.  This story follows up on a recent story we featured emphasizing the growing importance of social media platforms in travel marketing.