Duff on Hospitality Law

Our weekly Online Travel Update for the week is below. And for those mothers out there, we hope you had a great Mother’s Day! This week's highlights:

• • Las Vegas Hotels Earn Dismissal of Algorithmic Price-Fixing Case. One of the first of now several algorithmic pricing-fixing class action suits brought against members of the lodging industry was dismissed last week by a Nevada federal district court. Defendants in the case included Cendyn (relating to the co-defendants’ use of Cendyn’s revenue management tools GuestRev and GroupRev), Blackstone, Treasure Island, Caesars and Wynn. In dismissing the case, the federal court judge held that the claimants “have not plausibly alleged a tacit agreement between Defendants or a restraint on trade in part because Hotel Defendants are not required to and often do not accept the pricing recommendations generated by Cendyn’s products.” Click here for a complete copy of the court’s order dismissing the case.
    
    
  • Is Airbnb Considering a Subscription Model? In a recent Skift interview, Airbnb CEO, Brian Chesky, noted that he favored (and had been considering) a paid membership or subscription program versus traditional points-based loyalty programs. Loyalty and the possibility of an Airbnb loyalty program have been talked about for years – dating back to comments by Chesky in 2016. The key question for many is whether Airbnb and its still unique product offering would even benefit from offering such a program, which can be an expensive endeavor.
    
    
  • Federal Investigation of Airlines’ Loyalty Programs and Co-Branded Credit Cards Continues. A few weeks ago, we featured a story detailing an ongoing investigation by the US Department of Transportation and Consumer Financial Protection Bureau into airline loyalty programs and relatedly, their co-branded credit cards. A hearing on the issue was held this past Thursday and notably, none of the major airlines (nor their trade association) participated (though their loyalty programs were the subject of much of the discussion). Discounts carriers Sprint, Allegiant and Breeze participated in the hearing. Topics covered during Thursday’s hearing included the role airline loyalty programs may play in preventing competition in the market and the effect of airlines’ practice of devaluing miles.