Duff on Hospitality Law

Our weekly Online Travel Update for the week ending December 16, 2022, is below.  This week’s Update includes updates and additional details on several stories we’ve featured previously, including Airbnb’s new all-in pricing and ongoing parity investigations of OTAs’ practices in Australia.  Enjoy. 

• • Airbnb’s Adoption of All-In Pricing Is Official.  Beginning this month, Airbnb users in the United States (and other countries where local laws do not already mandate the display of all-inclusive pricing) will now see prices displayed on the platform inclusive of mandatory fees and charges (e.g., cleaning fees).  The all-inclusive prices will not include taxes.  Beginning next year, all-in prices will be the default rates shown on the platform unless a user elects otherwise.  All-in prices will be featured on listings, maps and when filtering search results.  What this change might mean to hosts continued use of cleaning fees (which have been the subject of many traveler complaints) and other mandatory charges, only time will tell.   How might this change affect the pricing practices other short-term rental platforms, that too remains to be seen. 
  • History of Australia’s Treatment of OTAs.  This past week Australian news outlet, ABC, provided a helpful overview of the Australian Competition and Consumer Commission’s (ACCC) history with OTAs and the new pending investigation re-examining OTAs’ rate parity requirements.  If you are not familiar with how Australia has historically viewed these requirements or the new pending investigation, which many believe will result in an outright prohibition of all rate parity requirements, I encourage you to read the story. 
  • EY to Expand Use of Blockchain Booking Portal.  Having successfully completed an initial 6-month test of its new blockchain-powered leisure travel booking portal, EY has plans to expand the portal globally and to offer hotels alongside its current air offerings.  Through the portal, EY has made available to its U.S. based employees direct connections with at least 2 U.S. airlines interested in providing EY employees personalized, discount travel offers.  In the weeks ahead, EY plans to expand the portal globally and to add extended stay hotel options for employees needing accommodations for longer periods for work projects.  EY has already identified two hotel partners (not disclosed) that in addition to the extended stay work related offerings, plan to offer leisure content as well.  While EY has no immediate plans to pursue similar direct connectivity options for its traditional corporate travel, the lessons learned by EY are sure to make an impact. 

For those of you celebrating holidays this week or next, Happy Holidays.