March 2 (Reuters) - UK's competition regulator on Monday said it was probing whether hotel chains Hilton, InterContinental Hotels and Marriott were sharing competitively sensitive information via
UK watchdog probing Hilton, IHG, Marriott, CoStar for data sharing
Competition and Markets Authority launches investigation into hotel data sharing
Overview of the Probe
March 2 (Reuters) - The UK's competition regulator launched a probe on Monday into whether hotel chains Hilton, InterContinental Hotels and Marriott were sharing competitively sensitive information using a hotel data analytics tool, which could potentially make their prices less competitive for the consumer.
The Competition and Markets Authority said the three companies were under investigation along with commercial real estate data and analytics company CoStar which owns a tool providing hospitality data insights.
Concerns Over Data Sharing
"...when rival businesses share competitively sensitive information - including through a third-party data analytics provider - this reduces the uncertainty competing businesses normally have about how each other will act. This can affect how strongly companies compete because it makes it easier for
them to predict what each other will do and coordinate their behaviour," CMA said in a statement.
Role of CoStar and STR in the Industry
CoStar's hospitality data business STR, provides data on the industry's standard metrics such as occupancy, average daily rates for rooms and revenue per available room, making it easier for hotels to decide room charges, lower costs and match supply with demand.
Responses from Companies Involved
CoStar's Statement
"We are surprised at the CMA's interest in a long-standing hotel data analytics and benchmarking platform, that for decades has been used by companies and government entities alike to better assess market dynamics," a CoStar spokesperson said in an emailed statement. The company said it was co-operating with the investigation.
Previous Legal Challenges
CoStar along with Hilton, Marriott, Hyatt and other hotels in September last year defeated a consumer lawsuit in the U.S. claiming they improperly shared revenue and other data to keep room prices artificially high.
Other Company Responses
IHG said it will co-operate with CMA's inquiries, while Marriott and Hilton did not immediately respond to requests for comment outside U.S. business hours.
Reporting Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala and Susan Fenton)
