3 ms·
Yes these lingering discussions tend to get buried. I'm actually surprised you responded given the nature of HN. I'm surprised I decided to check my comment his
by systematical 7y ago
Yes these lingering discussions tend to get buried. I'm actually surprised you responded given the nature of HN. I'm surprised I decided to check my comment history as well.
We disagree. I view rate parity as a form of price-fixing. I don't doubt the value OTAs provide to the consumer, but their value isn't sufficient enough to stand on its own without price fixing. Expedia knows this, and therefor uses its market position to fix prices and thus maintain is position. When challenged, which it has been numerous times, its legal team has been effective in arguing their point. I can't deny that. Perhaps my view is overly simplistic. I view someone telling me, if you want to sell your product on my site you have to sell it for the same price everywhere as price-fixing. Yes, its voluntary, but in practical terms its not because the hotel cannot survive without the OTAs. I won't weep too many tears, because the hotels could use their sufficient capital to address the problem. But, lets at least call a spade a spade here. If it looks, walks, and quacks. Well...
You brought up Amazon as an example of market indermediaries, otherwise known as middlemen. Are they engaging in price-fixing? What about ebay, are they engaging in price fixing? I'm actually interested if we can find a similar example to what OTAs do in another industry. I don't think we can.