The Competition and Markets Authority (CMA) has launched an investigation into suspected sharing of competitively sensitive information among hotel chains.
The CMA confirmed it is looking into whether Hilton, IHG Hotels and Marriott used hotel data analytics tool STR, owned by CoStar, to share information. All four businesses are under investigation.
In a statement, the CMA said: “Companies use various types of data analytics tools and algorithms to help them make commercial decisions. This can bring benefits including more intense competition, lower costs, and faster changes in prices to better match demand and supply in markets.
“However, 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 co-ordinate their behaviour.”
The CMA added that at this stage, ‘no assumptions should be made about whether the law has been broken’.
Following the investigation, the CMA may issue a statement of objections, giving the hotels the option to respond, if it ‘comes to the provisional view that competition law has been infringed’.
In a statement, IHG said: “InterContinental Hotels Group PLC (IHG) has been notified that the UK Competition and Markets Authority has opened an investigation into a number of hospitality groups, including IHG, and a hotel data analytics provider, regarding suspected sharing of competitively sensitive information among competing hotel chains. IHG will co-operate fully with the CMA’s inquiries. The CMA noted that no assumptions should be made about whether competition law has been infringed. IHG will not be making any further comment at this time.”
A CoStar Group spokesperson added: “We can confirm that our UK team is co-operating fully with the UK Competition and Markets Authority, which we understand has opened an initial investigation into the sharing of information among hotel operators. We are happy to provide the CMA with assistance.
“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. Meanwhile we remain focused on delivering best-in-class, pro-competitive products and services to our customers in the UK and beyond.”
