Duff on Hospitality Law

It was a relatively quiet week in the online travel world. Booking’s announcement last week about its launch of a new fintech business spurred several additional stories last week, two of which are included in this week’s Update. Enjoy.

Much Ado About Nothing: Tripadvisor Plus Announces Initial Partners  
("Tripadvisor Plus Signs Its First Hotel Chains But Those Missing Are a Bigger Story," June 14, 2021 via Skift Travel News) (subscription may be required)
Recently, Tripadvisor announced that it had signed its first three hotel groups to its subscription service, Tripadvisor Plus: Barcelo Hotels, Millennium Hotels and Pestana Hotel Group. While these three groups represent an additional 500 new hotels for the service, Tripadvisor Plus has yet to convince any major supplier to join the service. Tripadvisor claims it continues to have many “positive conversations” with major suppliers about the service, though, at least publicly, nothing has yet come from those “conversations.” Until then, Tripadvisor will have to continue relying on rates and inventory sourced from other intermediaries like Trip.com, Getaroom and Internova. Suppliers wishing to avoid the new subscription service will need to remain vigilant in their efforts to monitor and possibly curtail the onward distribution practices of these (and other) existing distribution partners.   

This week’s Update features details on two recently filed lawsuits — one by American Airlines against Sabre and the other against Southwest Airlines by airfare discounter, Skiplagged. Enjoy.

Continued Inventory Shortages Cause Vrbo To Get Creative
("Vrbo Adds Hotels to Fill In Vacation Rental Gaps," July 8, 2021 via Skift Travel News) (subscription may be required)
For several weeks now, we have included stories highlighting the mounting inventory shortages in vacation rentals. Travelers cannot seem to get enough of these unconventional (or maybe not so unconventional any more) accommodations. In an effort to address these shortages, particularly in high-demand resort markets, Expedia Group’s Vrbo is now featuring traditional hotel accommodations — Holiday Inn Express, La Quinta Inn & Suites, Extended Stay America, etc. — in its search results. According to Expedia Group, Vrbo is sourcing these guest room accommodations both through corporate, portfolio-wide agreements and individual property agreements. Hotels featured on the site can elect to have Vrbo collect payment in advance, or the hotels may collect payment directly from the guest. Does this officially signify the transition of vacation rental platforms to becoming just another online distribution channel (like all other distribution channels)? It isn’t clear.    

This week’s Update features a variety of stories, including details on the recent change in leadership at Booking.com in the Asia-Pacific region. Enjoy.

Spanish Hoteliers Cry Foul
("Hotels in Spain sue Booking.com for 'abusive practices' – '40% more than real price'," June 22, 2021 via Daily Express)
The Madrid Hotel Business Association recently announced that it had made claims against Booking.com to the Spanish competition authority, asking the authority to investigate the online travel agency’s practices. The claims center around Booking.com’s rate parity requirements (which the Association alleges result in booking prices 40 percent higher than its members’ own prices), and the degree of control that Booking.com’s website wields over the hotels’ guests – booking management and (now) payments. The Association’s complaints came on the heels of similar claims made by the Spanish Association of Hotel Directors.