Our cruise industry friends make an appearance in this week’s Update, one of their first appearances in some time. Enjoy.
South Korean Regulators Re-Examine OTA Practices
(“Online hotel booking sites to come under heightened scrutiny from South Korean regulator,” October 28, 2021 via MLEX Insight) (subscription may be required)
By now, readers are well aware of South Korea’s previous investigation into the major online travel agencies (OTAs)’ contracting practices (specifically, rate parity requirements) and the resulting “corrections” announced by OTAs (Booking.com, Agoda, Expedia and Hotels.com) earlier this year. These corrections mirror the compromises reached in several other countries where OTAs agreed to remove availability and indirect channel rate parity, but retained direct channel parity requirements (e.g., hoteliers must continue to provide OTAs with rates equal to or better than the rates on the hoteliers’ own websites). With the travel industry expected to rebound quickly in Korea as the threat of COVID subsides, the Korea Fair Trade Commission (KFTC) announced last week plans to re-examine the OTAs’ current contracting practices and their effect on the market. Separately, the KFTC announced that an investigation into OTAs’ advertising practices, specifically whether OTAs provide adequate notice regarding display advertising’s effects on sort order, was already underway.