IHG guilty of price fixing?

Discussion in 'IHG | Rewards Club/Ambassador' started by guinnessxyz, Aug 7, 2012.  |  Print Topic

  1. sobore and uggboy like this.
  2. uggboy
    Original Member

    uggboy Gold Member

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    Have also read about this in the FT recently. We will see what further information on this case will be available in the coming days.
     
  3. nacho

    nacho Silver Member

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    It's not just IHG, I think the other chains are going the same things with booking.com and expedia - I hardly get any BRG through these sites.
     
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  4. macbookguy

    macbookguy Silver Member

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    I have a hard time with this price fixing lawsuit. I see nothing wrong with a hotel or airline saying "this is the minimum rate I will accept." With that said, if Priceline or Expedia is willing to price a hotel $20 cheaper and eat that $20 themselves, I have no problem with that either. But the hotel should be able to say "this is what you pay me regardless" and that matching their minimum rate.
     
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  5. Scottrick
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    Scottrick Gold Member

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    I agree, but I think one of the problems is that any third party could harm a firm like IHG by undercutting their prices by $1 so that a BRG claim becomes possible. IHG is trying to have it's cake and eat it too: They want to be able to advertise a customer-friendly BRG policy while making it almost impossible that anyone could have a lower rate. What's the point of advertising you have the lowest prices if you remove any competition?
     
  6. paladin87
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    paladin87 Silver Member

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    The problem is that IHG most likely uses the BRG to find sites that undercut them and make them stop, effectively killing the BRG as time goes on.
     
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  7. macbookguy

    macbookguy Silver Member

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    A very good question. My understanding from posts and stories on FT, TPG and PCI is that they already make it next to impossible to claim a BRG anyhow -- for example it takes days to process and the website a customer is trying to use for the BRG must still have that price showing. So if Expedia only undercuts them for a day or two and then drops it, or if they only relay the rate on to a certain group (their best users) then that wouldn't be honored anyway. (Please correct me if I'm wrong there.) Not to mention while this would work on the general public, who isn't to say they wouldn't remove any points incentive or make the BRG worse (i.e. no free night) to keep those of us who want points and status well enough out of it to begin with?
     
  8. Scottrick
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    Scottrick Gold Member

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    If true, I'm sure that violates some law against price fixing.
     

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