OTA PARITY CLAUSES

Expedia and Booking.com will amend price and availability parity clauses in their contracts with New Zealand accommodation providers as a way of resolving the recent Commerce Commission investigation.

The clauses previously had required providers to offer their best price and all their rooms to online travel sites operated by Expedia and Booking.com including Wotif.com and Hotels.com. The investigation was into whether the clauses were anti-competitive that prevented other online sites from negotiating better direct deals.

The changes mean that properties can now offer lower rates or tailor special deals for walk-ins, telephone bookings or loyalty members that are separate to the prices they advertise online and are no longer required to offer all their rooms to Expedia or Booking.com