UK: Office of Fair Trading to investigate hotel prices
After months of lobbying from a discount website, the UK Office of Fair Trading (OFT) has started an investigation on whether some hotels have put pressure on third parties to raise their rates. Hotel rooms are often sold through websites at rates far lower than those offered by travel agents or the hotels themselves, because these websites operate on lower profit margins.
If the Office of Fair Trading finds that there have been breaches of the Competition Act, it can impose penalties of up to 10 per cent of a company's turnover.
Source: Telegraph.co.uk; find article here>>.