Comment Re:Uh hmmm (Score 2) 20
It is a real problem.
At the moments it is more like a duopoly.
Expedia Group: Expedia, Hotels.com, Hotwire, Trivago, Orbitz, Venere
Booking Holdings: Booking.com, Kayak, Agoda, Rentalcars.com, Momondo
Those aren't even all their subsidiaries. They also run OEM search engines that various smaller companies use.
A friend ran an apartment hotel and he cursed them all to hell and back. The first time he told me about expedia fees it was in the order of 40%. I see a website now lists it as up to 25%, but I guess there might be some numbers that vary depending on sales tax (ie, the booking engine wants a commission of 25% on the total amount billed, including taxes, so what the hotel ends up might be 60% or less)
Next there were a lot of other conditions, as you could not list the hotel at a cheaper rate anywhere else. So you couldn't undercut the search engine.
Now, in a highly functioning free market, the commision from the hotel to the search engines should drop to very low percentages because competition, economy of scale etc. I mean, the system is developed. The owners do all the work of updating the listings etc. Instead they have remained high and I guess the Spanish government has now had enough of their pricing practices. Which I agree, it's about time.
While having almost all of the worlds hotels available through one site is a true benefit to me as a consumer, it doesn't feel quite right that they get to keep so much of the cost of a stay.
Okay great, they have their bonus/loyalty programs, and I see that they have to cover the cost of that, but I would rather they scrap that program and instead lowered their commission by 10%.