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Rate Parity in the Hotel Industry

PDF Hotel Owner Conference
Napa, California
June 12, 2015

Ilse Scott discussed "Rate Parity in the Hotel Industry" at the California Hotel & Lodging Association's Hotel Owner Conference taking place June 11-12 in Napa, CA. She reviewed recent litigation faced by the hotel industry as a result of the agreements between individual hotels and online travel agents (OTAs) which set the price OTAs must charge for a given hotel room. She discussed how the current litigation highlights the issues producers of goods and services must be cognizant of when entering into agreements affecting the price of those goods and services. Further, she looked at how some of those risks can be addressed, e.g., through arbitration agreements.