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Australian Motel Owners Seek Review of Booking.com Contracts

Motel operators in Australia report paying Booking.com commissions between 12 and 15 percent, with some reaching 30 percent under optional programs. A European class-action lawsuit alleges similar clauses caused overcharging for Dutch travelers since 2013. Australian consumer groups and hotel associations are calling for a government review of the contracts.

Abc
1 source·May 29, 5:08 PM·2m read
Australian Motel Owners Seek Review of Booking.com ContractsAbc
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Com after determining that direct bookings saved customers money. com cost $190. com are among the largest expenses for accommodation providers. The standard rate is around 15 percent, though operators reported paying between 12 and 15 percent, with some reaching 30 percent when participating in multiple optional programs.

Com contracts to offer the platform the same or better rates and cancellation terms than those available elsewhere. Wurs stated he has not complied with this rate-parity clause for more than two decades. com reported it does not set prices and that partners control the number of rooms and rates listed on the platform.

The company said any additional programs for increased visibility are optional and described its commissions in Australia as among the lowest globally. The company generated an estimated $700 million in revenue in Australia in the current financial year, according to Ibis World data.

Around 15 percent of Wurs's reservations now come through the platform.

James Goodwin, CEO of Accommodation Australia, said the 2016 agreement allowing hotels to offer lower rates by phone or in person is outdated. He called for the Albanese government to direct Treasury or the ACCC to examine parity clauses, commission rates, loyalty programs, and search-ranking practices.

Assistant Minister for Competition Andrew Leigh stated that price parity clauses are prohibited if they breach the anti-competitive provisions of the Competition and Consumer Act 2010. He noted the government has introduced legislation targeting unfair trading practices.

Com alleging that parity obligations caused about 1 billion euros in losses for Dutch travelers since 2013. The groups claimed the clauses and design practices known as dark patterns prevented hotels from offering lower prices through other channels.

com described the claims about its past use of parity clauses as incorrect and unjustified, noting it has removed the clauses in Europe. Consumer Policy Research Centre CEO Erin Turner said Australian consumers need stronger protections against online practices that may disadvantage them.

com since 2017, said Australian authorities should investigate whether similar conduct affected local travelers.

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