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Price Fixing
UK hotels investigated in price-fixing scandal
UK holiday prices could fall dramatically after it was discovered that room rates were secretly fixed.
HOTELS IN THE UK are being investigated over a suspected price-fixing scandal.
The Telegraph reports that hotels told travel agents not to offer rooms at discounted prices. The Office of Fair Trading in the UK has launched an investigation into alleged price fixing. Hotels found to be in breach of the rules could be fined tens of millions of euro.
The system of price fixing being investigated involves several hotel chains agreeing to sell rooms for exactly the same rate, and any hotel which went below that price was subject to “sanctions” imposed by the discounters themselves. The Telegraph says there is a substantial amount of evidence and correspondence between parties to indicate price fixing.
It’s thought that the end to the practice of fixing room rates could significantly reduce the cost of holidays and hotel stays.
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