Hotel chains face lawsuit over 'price fixing', STR
Saturday, 24th February 2024
Source : External sources & 4Hoteliers.com

Benchmarking company STR along with 10 hotel companies, face a lawsuit claiming that the 'exchange of competitively sensitive information' allows operators to set high prices.

The lawsuit claims: “Competitors in the luxury hotel industry have agreed to continuously share their detailed, audited, competitively-sensitive information about their prices, supply, and future plans through an intermediary, Smith Travel Research (STR), which is owned by defendant CoStar Group. The purpose of this exchange is for competitors to share “super-timely revenue and occupancy data” so that competitors can ensure they are getting their “fair share” of revenues."

“In other words, the exchange of this information allows participating hotels to set prices higher than they would have been absent this agreement to exchange information. This is price fixing in its modern form and is illegal under the Sherman Act.”

In addition to CoStar and STR, defendants named in the lawsuit include Hilton, Hyatt, IHG, Loews, Marriott and Accor. Co-conspirators include Choice, Great Eagle Holdings, Wyndham and Omni.

Filed on 20 February 2024, the plaintiffs have demanded a trial by jury.

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