Small hotels would be able to advertise online cheap room rates without fear of being punished by web behemoths under a plan Labor says will reduce the financial squeeze facing the tourism sector.
If they are found to have advertised cheaper rates, they can have their presence on the major websites "darkened" whereby their offerings are pushed to the final page shown to prospective customers. The commissions paid by the hotel to the two major companies, already between 15 and 20 per cent, can also be pushed even higher.
Ending private parity clauses will help small hotels and deliver cost savings to consumers, says Labor competition spokesman Andrew LeighHe said Labor would also direct the Australian Competition and Consumer Commission to investigate the use of such clauses in other industries and across other platforms.
Source: Holiday News (holidaynews.net)
Hotel Watch.
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