After evaluating the received feedback, the Hungarian Competition Authority (GVH) has finalized its report on the expedited sector inquiry into the domestic online accommodation booking and hospitality market. The national competition authority has put forth several proposals to protect Hungarian consumers and domestic accommodation providers.
In a world sensation, the Fidesz party (currently in power) has submitted a legislative proposal to the Hungarian Parliament regarding online accommodation platforms, based on the observations of the Budapest Chamber of Commerce and Industry (BKIK) and authorities’ findings. The proposed “Booking Law” not only prohibits the practice of price parity but also holds online platforms accountable for the online reviews appearing on their platforms.
Glenn Fogel, CEO of Booking.com, apologized in a letter on Tuesday to those hosts who were affected by the payment scandal and have not received their money, either late or up to this day.
The Hungarian Competition Authority (GVH) has concluded its expedited sector investigation into the domestic online accommodation booking and lodging market. In its draft report, the Hungarian watchdog has made several recommendations, including prohibiting contractual practices that hinder price competition, banning price parity obligations, and improving the situation of hosts in effectively managing market issues similar to those that occur during the summer season. Market participants have 30 days to provide their feedback on the proposal.
The Hungarian Bureau of Competition (GVH) found it necessary to request an expedited investigation against the Dutch Booking.com accommodation portal regarding their undergoing debt case toward the Hungarian accommodation providers. At the same time the Hungarian Tourism Agency (MTÜ) offered legal aid to the ones affected in the matter – according to the meeting held last Tuesday by the Tourism Subcommittee of the Hungarian National Economic Committee.
For weeks, there have been speculations about what may have caused delayed payments from Booking.com towards accommodation hosts after the travel marketplace performed so-called system maintenance. Allegedly, it was an SAP system migration that may have caused troubles and serious delays in payments. – writes PCWorld.
Since 26 July, the media in Hungary have been keeping the issue of Booking’s delayed payments in the headlines, putting the company under considerable pressure. Unfortunately, readers and even some members of the industry questioned the veracity of the problem and after the investigation of the MTÜ (Hungarian Tourism Agency) and the GVH (Hungarian Competition Authority), they started to talk about a political game, saying that if there really was a Booking scandal, the international press would have reported it. Although, with a significant delay, they did.
Booking holding (NASDAQ: BKNG)’s second-quarter earnings beat analysts’ estimates, that clearly shows strong demands to travel despite higher airfares and accommodation prices. – reported by Bloomberg and Reuters referring to the company’s quarterly stock market report.
Since June 24th, the online accommodation portal Booking.com hasn’t transferred the due amounts to accommodation providers internationally, citing maintenance of its billing system. The deadline set by the company for itself, which has been modified several times in the meantime, expired on July 24th, but the hosts still haven’t received the money of the bookings. Meanwhile, payments are made without any issues for hotels using the virtual card payment solution. Update: Booking’s system now promises reconciliation only for September.
