Australia’s Accommodation Sector says it’s important any review of the current price parity clauses set by online booking platforms takes into account the nuances and practical impacts on the full spectrum of accommodation providers.Treasury has just released a consultation paper “Online bookings – restrictions on tourism and accommodation providers setting prices” to get feedback on the impact and extent of online booking platform practices including price parity clauses which prevent participating accommodation providers offering lower prices.
The ongoing review is also examining the impact on competition for accommodation providers and consumers.
Accommodation Australia and Tourism Accommodation Australia have both been a part of the ongoing review and consultation over many years and will be lodging a joint submission to the current review.
That submission will highlight the dichotomy of impact between hotels with strong international clientele which benefit from the relationship while hotels with strong domestic businesses, often in regional locations, often find themselves disadvantaged through being forced into problematic pricing levels or having to pay commissions to an online platform rather than guests booking directly.
Quote attributable to Accommodation Association President Leanne Harwood and proposed President Accommodation Australia:
“Online booking platforms unlock a global market for participating accommodation providers and are an increasingly important and valued distribution channel that allows properties to become visible in ways that aren’t otherwise possible. However, for those hotels and providers that aren’t so reliant on international guests, the current framework can be problematic.”
“The online booking space has grown rapidly and continues to evolve and getting the right framework which delivers for everyone isn’t easy. It’s a complicated and complex area and any changes must be informed by the on-the-ground reality for accommodation providers, large and small, domestic and global.”
Quote attributable to Sean Hunt, TAA Board Member and proposed Vice President Accommodation Australia:
“As a sector, both organisations have spent a lot of time working with the relevant bodies and Government to ensure that whatever we end up with works for the full spectrum of accommodation providers in Australia. Getting that balance right so that the framework delivers for these businesses and for consumers remains a priority.”
