UK competition watchdog investigates hotel groups over alleged data sharing

UK competition watchdog investigates hotel groups over alleged data sharing Regulator looks into claim Hilton, InterContinental Hotels and Marriott could be sharing ‘ competitively sensitive’ information via analytics tool Business live – latest updates The UK competition watchdog has opened an investigation into three of the world’s biggest hotel chains – Hilton, InterContinental Hotels and Marriott – amid suspicions they could be sharing “ competitively sensitive” information with each other. The Competition and Markets Authority is investigating allegations that the businesses, which together operate more than 25,000 hotels worldwide, could be sharing information through the data analytics tool STR. CoStar, the real estate data firm that owns STR, is also under investigation. While it is common for hotel chains to use data analytics and algorithms to help them set prices, which can improve competition and lower costs, sharing this information with competitors can be harmful to their customers. The watchdog said: “When rival businesses share competitively sensitive information – including through a third-party data analytics provider – this reduces the uncertainty competing businesses normally have about how each other will act. “This can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour.” The CMA will spend the next six months gathering information as part of its investigation. Shares in the FTSE 100-listed IHG dropped by as much as 5% in early trading on Monday. CoStar, which is headquartered in Washington DC, provides data on the hotel industry’s standard metrics such as occupancy, average daily rates for rooms and revenue per available room. This makes it easier for hotels to determine room charges and match supply with demand. The CMA said: “At this stage, no assumptions should be made about whether the law has been broken. Following a period of investigation and informa...