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Booking will not be able to limit hotels from offering cheaper prices to competitors - Walla! Tourism

2020-11-27T13:38:12.145Z


The booking platform has agreed with the competition commissioner that it will remove from the agreements with hotels in Israel the ban on offering better terms on other sales channels.


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Booking will not be able to limit hotels from offering cheaper prices to competitors

The booking platform has agreed with the competition commissioner that it will remove from the agreements with hotels in Israel the ban on offering better terms on other sales channels.

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Michal Raz-Haimovich

Thursday, 26 November 2020, 13:11

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Booking will remove from the agreements with hotels in Israel the ban on publishing prices and better terms on other online platforms and online sales - this is what the competition commissioner, Adv. Michal Halperin, concluded. Following this, the competition authority issued an agreed order for public comments signed with Booking Israel and the global headquarters of global orders platform. As part of the agreed order booking undertakes to remove various restrictions that existed in its agreements with hotels and accommodations, so Hawking could not prevent from hotels to offer other sales channels their customers better conditions than those offered on site Booking.com.



booking can not Prevent hotels from offering better prices or conditions by offline means, for example, hotels can offer customers a lower price by phone or at the hotel counter, and hotels can also offer different room types on competing online platforms or on their home websites than those shown in booking. Thus, for example, some of the restrictions that Booking undertakes to remove from its agreements with the accommodation establishments are offers in offline marketing channels such as consumer clubs, physical offices of travel agents or by telephone and direct mail offers.

To electronic or text messages.

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Similar to agreements with European authorities

Booking's booking platform is the most prominent and powerful when it comes to booking hotel rooms all over the world, and also in Israel.

Hoteliers pay for a platform derived from the transaction price as a commission and many of them complain that the company limits them as part of their presence on the site.

Consumers already know that after checking prices in booking, in many cases it is possible to get a better deal directly from the hotel or B&B or upgrade to a room if the booking process is done directly (mostly by phone).

For hoteliers they will be able to save the commission which can reach 20%.



The agreed-upon order sought by the Authority in the country is similar to the agreements reached by Booking with similar authorities in Europe.

In 2015, following a joint review by competition authorities in Italy, France and Sweden, Booking undertook a series of commitments regarding agreements with hotels in Europe.

The commitments on the basis of the order agreed with the Commissioner are similar in nature to those undertaken by Booking in Europe.

The Competition Authority has initiated an investigation following complaints that these restrictions also exist with hotels in Israel.

"The Commissioner reached agreements with Booking early in its investigation before any findings were received regarding a breach of the law or a breach of competition," the authority said in a statement.



According to the competition commissioner, Michal Halperin: "The agreed order is an expression of the Authority's policy according to which the obligations under the Economic Competition Law do not apply to global companies operating in Israel. International companies should implement the directives of competition authorities in the world - also in Israel. Inferior to consumers in other countries. "



The agreed order is now published for public comment for 30 days, and subject to hearing and weighing the comments it will be submitted for approval to the Competition Court.

The obligations that are the subject of the order will be valid for a period of 4 years from the date of receipt of approval from the competition court.

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Source: walla

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