Annex 2 Questions and answers about Booking

2014-12-15 Dnr 596/2013
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Annex 2
Questions and answers about Booking.com’s commitment
In order to enable a better understanding of the Swedish Competition Authority’s
investigation and the commitment, brief questions and answers are presented in
the following. The questions and answers are not intended to offer a complete
picture of the commitment.

Question 1. Why is the Competition Authority investigating the
agreements between Booking.com and hotels?
Answer: The Competition Authority has identified that the price parity
clauses currently applied between Booking.com and hotels may inhibit
price competition between online travel agents. The price parity clauses
can therefore lead to higher prices for staying at hotels.

Question 2. What does Booking.com’s commitment proposal mean in
brief?
Answer: The commitment means that it will be possible for hotels to offer
other room rates through Booking.com than through other online travel
agents for the same hotel room. Booking.com may still state in their
agreements with hotels that they are not permitted to offer lower rates in
their own sales channels (e.g. hotels’ own websites) than through
Booking.com (see paragraph 2 and footnote 2 in the commitment).

Question 3. Who is affected by the commitment?
Answer: All hotels and accommodations located in the EEA that have
agreement with Booking.com.

Question 4. What prices will not be covered by the proposed price parity
clauses?
KKV1000, v1.3, 2011-12-15
Answer: Hotels will be able to set any prices they want in relation to
business and group bookings made bilaterally, and to members of loyalty
programs. It will not be permitted to make these rates or discount levels
public (see paragraph 2.2 in the commitment). Specific limitations also
apply to loyalty programs (see paragraph 2.2 (i) in the commitment).
Adress 103 85 Stockholm
Besöksadress Torsgatan 11
Telefon 08-700 16 00
Fax 08-24 55 43
[email protected]
2014-12-08 Dnr 595/596

Question 5. Which sales channels fall under the scope of the price parity
clauses according to the commitment?
Answer: Price parity clauses will continue to apply in relation to all of the
hotel’s direct sales channels: reception, e-mail, fax, the hotel’s website, call
center and third-party platforms that link to the hotel’s own channels, for
example metasearch sites.

Question 6. How does Booking.com’s commitment affect the hotels’
ability to negotiate other terms with Booking.com or other online travel
agents?
Answer: Booking.com’s commitment does not prevent hotels from
negotiating other terms than those proposed in the commitment. For
example, hotels and Booking.com are allowed to conclude agreements
without price parity.
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