Post by khatunrita309 on Mar 12, 2024 6:40:26 GMT
OTAs feel at risk . For this reason , Ettsa , the European Association of OTAs and GDSs, has officially asked the Italian Parliament to repeal the law in the Competition Bill which would prohibit the rate parity clause in contracts with OTAs. According to Ettsa, the law would undermine the very business of the portals and would also be “ incompatible with the EU Treaties and the competition rules of the European Union.” But wait a minute: aren't these exactly the same reasons why rate parity clauses should be banned, according to hotels?! After having lodged an appeal in France, Ettsa is now trying with Italy. If you missed any episodes, I remind you that in our country the Chamber approved a bill with which it declared illegal the installment parity clause which for years has regulated the relationship between hotels and intermediaries. Similarly, in France parity was prohibited with the Macron Law and in Germany the Antitrust ruled against it.
To better understand the reasons for the dissent expressed by Ettsa, let's summarize the key points of the press release released two days ago by the Brussels offices: The so-called Article 50 was introduced by the Chamber of Deputies without consulting sector operators and without any study evaluating the impact of the legislation It is very likely to be incompatible with the EU Treaties and the competition rules of the European Union . It violates fundamental EU principles, such as the free movement of services and freedom of establishment, as well as EU competition law, undermining the Industry Email List sustainability of the business model adopted by OTAs Consumers and hotels will be harmed , especially the smaller ones, which form the backbone of the Italian tourism sector The proposed Article provides for the nullity of the contractual clauses through which hotels undertake not to negatively discriminate against consumers who book on OTAs None of these points actually seem to hold up completely: It is true, no one from Ettsa or its representatives was consulted by Parliament, but it is equally true that com testified in court precisely on this when he negotiated precisely to keep the installment parity clause at least partially active. If Article 50 of the Competition Bill goes against European rules.
how come the law passed without problems in France and in Germany, as in other European countries, did the Antitrust question the legitimacy of parity? I doubt that consumers would be harmed by the loss of parity because it would most likely trigger a price war between OTAs and hotel sites that would work in their favor. As far as hotels are concerned, we have often discussed the consequences and it cannot be denied that there would be advantages but also pitfalls , especially for small independent hotels. Different prices on different sales channels have never constituted discrimination for anyone. It will be up to consumers to freely choose where and at what price to book. It is clear that the European Technology and Travel Services Association (ETTSA) is trying to protect the interests of its members: GDS and online distributors. Excluding Booking, it brings together almost all the major players in the sector, such as Expedia, Odigeo, Sabre, Travelport, Skyscanner and TripAdvisor . The biggest danger for intermediaries is that the decision of the Italian Parliament, together with those taken in France and Germany, pushes individual governments to reflect on a European, if not even global, level . We would be faced with a truly epochal change for the sector. The OTAs wanted to warn us: if parity disappears, their business as we know it today could become unsustainable. But are we really sure that this is the case? Share Did you like this article? Subscribe to the RSS Feed Add it to your favorites Read other users' comments Sign up to our newsletter Write your opinion Read similar/related articles Print this article
To better understand the reasons for the dissent expressed by Ettsa, let's summarize the key points of the press release released two days ago by the Brussels offices: The so-called Article 50 was introduced by the Chamber of Deputies without consulting sector operators and without any study evaluating the impact of the legislation It is very likely to be incompatible with the EU Treaties and the competition rules of the European Union . It violates fundamental EU principles, such as the free movement of services and freedom of establishment, as well as EU competition law, undermining the Industry Email List sustainability of the business model adopted by OTAs Consumers and hotels will be harmed , especially the smaller ones, which form the backbone of the Italian tourism sector The proposed Article provides for the nullity of the contractual clauses through which hotels undertake not to negatively discriminate against consumers who book on OTAs None of these points actually seem to hold up completely: It is true, no one from Ettsa or its representatives was consulted by Parliament, but it is equally true that com testified in court precisely on this when he negotiated precisely to keep the installment parity clause at least partially active. If Article 50 of the Competition Bill goes against European rules.
how come the law passed without problems in France and in Germany, as in other European countries, did the Antitrust question the legitimacy of parity? I doubt that consumers would be harmed by the loss of parity because it would most likely trigger a price war between OTAs and hotel sites that would work in their favor. As far as hotels are concerned, we have often discussed the consequences and it cannot be denied that there would be advantages but also pitfalls , especially for small independent hotels. Different prices on different sales channels have never constituted discrimination for anyone. It will be up to consumers to freely choose where and at what price to book. It is clear that the European Technology and Travel Services Association (ETTSA) is trying to protect the interests of its members: GDS and online distributors. Excluding Booking, it brings together almost all the major players in the sector, such as Expedia, Odigeo, Sabre, Travelport, Skyscanner and TripAdvisor . The biggest danger for intermediaries is that the decision of the Italian Parliament, together with those taken in France and Germany, pushes individual governments to reflect on a European, if not even global, level . We would be faced with a truly epochal change for the sector. The OTAs wanted to warn us: if parity disappears, their business as we know it today could become unsustainable. But are we really sure that this is the case? Share Did you like this article? Subscribe to the RSS Feed Add it to your favorites Read other users' comments Sign up to our newsletter Write your opinion Read similar/related articles Print this article