Duff on Hospitality Law

Our weekly Online Travel Update for the week ending December 2, 2022, is below.  This week’s Update features an important update on distributors’ use of so-called narrow parity provisions in Australia and takes a closer look at two of Phocus Wire’s 2023 Hot Travel Startups.  Enjoy.

• • Australian Treasury Re-Examines Narrow Parity Provisions.  In a statement released last week, the Australian Treasury announced that it was commencing a review of distributors’ continued use of narrow (or direct channel) parity provisions.  The investigation makes good on the Australian Labor Party’s campaign promise to abolish price parity clauses if elected to office.  Readers of our Update will remember that Australia’s Competition & Consumer Commission (ACCC) investigated distributors’ use of parity provisions back in 2016, which ultimately led to Expedia’s (but not others) voluntary abandonment of the entire practice.  As part of its current review, the Treasury has circulated a questionnaire among hoteliers asking hoteliers to comment on the consequences of failing to honor the narrow parity provisions.  Hoteliers have until January 6 to respond. 

• • Another Weekly Update, Another Story on Payments.  Anyone noticing a trend here?  This past week Mastercard announced it was partnering with hospitality solutions provider, Sabre, and Sabre-owned Conferma Pay, to (in their words) build new capabilities for virtual cards.  As part of the newly announced deal, Mastercard is making a minority investment in Conferma.  Sabre’s purchase of Conferma and this newly announced partnership with Mastercard, is part of Sabre’s longer term of goal of building an independent payment ecosystem.  This latest announcement by Mastercard comes on the heels of Amadeus’ recent launch of its own payment business, Outpayce (which we covered in a prior Update), which will also include the launch of a virtual credit card.

• • Hot 25 Travel Startups for 2023 – Fairlyne.  Familiar with the term “re-commerce”?  Although the term has been primarily used in the retail industry, Paris-based Fairlyne hopes to change that.  Fairlyne’s technology allows railways, airlines and hoteliers to re-sell previously booked (but unused) non-refundable tickets and bookings.  As our readers might recall, there are a number of platforms that purport to allow travelers to re-sell their booked reservations (many acting in violation of applicable booking terms and conditions), but this is the first platform we’ve seen that works directly with the suppliers to allow their travelers and guests to re-sell their reservations.