Hilton, Marriott, IHG Facing UK Investigation in Data Inquiry
The UK's competition watchdog initiated an investigation into whether Hilton, InterContinental Hotels, and Marriott were exchanging competitively sensitive information via a hotel data analytics tool that might lead to less competitive pricing for consumers.
The Competition and Markets Authority announced that three firms were being investigated alongside CoStar, a commercial real estate data and analytics firm that owns a tool offering hospitality data insights.
"When competing companies exchange sensitive information, even via a third-party data analytics provider, it lessens the uncertainty that typically exists regarding each other's actions. This can influence the intensity of competition among companies as it simplifies their ability to anticipate each other's actions and align their conduct," states CMA.
CoStar's hospitality data division, STR, delivers information on key industry metrics including occupancy, average daily room rates, and revenue per available room, simplifying the process for hotels to set room prices, reduce expenses, and align supply with demand.
Also Read: Soil Based Microbial Fuel Cells Could Protect the Environment from Flammable Chemicals
"A CoStar spokesperson stated in an emailed response that they are surprised by the CMA's interest in a hotel data analytics and benchmarking platform that has been utilized for decades by both companies and government entities to enhance market assessments." The firm stated it was collaborating with the inquiry.
Also Read: India's UPI Launch in France Opens Gateway to Global Fintech Power
In September of last year, CoStar, Hilton, Marriott, Hyatt, and other hotels successfully dismissed a consumer lawsuit in the U.S. alleging that they improperly shared revenue and other information to maintain artificially elevated room prices.
Also Read: Microsoft for India: Making India for Future Ready
IHG stated it will collaborate with the CMA's investigations, while Marriott and Hilton did not respond right away to inquiries for comments outside U.S. business hours.