Russian hotels may reduce prices over decision on Booking

08:20, 24 December 2020
Russian hotels may reduce prices over decision on Booking Photo: Victor Lisitsyn/Global Look Press

Hotels in Russia can reduce prices and improve the quality of service, as they will get rid of the requirement from the Booking service about the so-called price parity, at which they are obliged to provide the best fees for accommodation through this service.

Hotels will be relieved of pressure from Booking because of the decision of the Russian Federal Antimonopoly Service (FAS), which admitted that the company had violated clause 3 of Part 1 of Art. 10 of the law on the protection of competition, Izvestia reports.

FAS believes that Booking has taken advantage of its dominant market position. The service demands the lowest prices to be posted on the hotel's website and Booking, but not on other portals. If the principle of parity is violated, then under the terms of the agreement, Booking can block a hotel on its service, which for many is tantamount to leaving the business, given the share of sales through the service.

While the market requires sound competition, Booking has a monopoly position in individual bookings with a volume of more than 70%. It dominates and abuses its position by imposing price parity clauses, Alexei Kozhevnikov, one of the authors of the appeal to the FAS, Vice President of Opora Rossii, told the newspaper. reported earlier that Turkey imposed new restrictions on hotels and restaurants.