Expedias acquisition of Wotif may have a negative impact on industry

first_imgRecently the Australian Competition and Consumer Commission (ACCC) granted Expedia a 100 per cent acquisition of Wotif.com, since this decision the rest of the industry has voiced some concerns.The Accommodation Association of Australia (AAoA) and the Tourism Accommodation Association (TAA) have both raised concerns about the decision and its impact on the on the Australia accommodation industry.Industry spokesman, Bradley Woods, has said that the acquisition may trigger major commission rate increases, and give Expedia too much control in the industry.“Currently Expedia is estimated to hold 10 per cent of the Australian hotel portal market. With the acquisition of Wotif, Expedia will grow to 45 per cent,” said Mr Woods.This acquisition removes choice for accommodation providers between foreign and Australian operators and the end effect of acquisitions and concentrations of market power may cause the consumer to bear the cost of less competition.The hotel and accommodation industry is also concerned about the emergence of rate clauses into hotel and other transaction authority (OTA) contracts.OTAs demand that hotels not be allowed to offer better rates to consumers through their own hotel owned websites or booking systems.“We have already raised the issue with the ACCC and will now take the matter further with the Commonwealth government and ACCC as it is clearly contrary to Australia’s competition and consumer law principles,” said Mr Woods. Source = ETB News: Lewis Wisemanlast_img

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