GVH would initiate price competition and protect accommodation providers and consumers in the online accommodation booking market

By: Trademagazin Date: 2023. 10. 20. 11:31

The Economic Competition Authority (GVH) has concluded its accelerated sector investigation on the domestic online accommodation agency and accommodation market. In its draft report, the national competition authority formulated several proposals: among other things, it would prohibit contractual practices that hinder price competition, and improve the position of accommodation providers in the effective management of mass market problems similar to the one in the summer. The affected market participants have 30 days to comment on the draft.

At the end of August, the Economic Competition Authority launched an accelerated sector investigation on the domestic market of online accommodation reservations and accommodation services. The initiation of the investigation was preceded by a large number of market complaints from the domestic accommodation provider partners of the most decisive international accommodation broker – Booking.com. In addition to a thorough mapping of the problem indicated by the accommodation providers, including through raids, the GVH’s investigation covered, among other things, a detailed analysis of the competitive processes of the affected markets following the coronavirus epidemic, as well as the contractual conditions and practices of the accommodation brokers, which may affect competition between accommodations.

The tourism sector is one of the driving forces of the Hungarian national economy: it produces more than one-tenth of the domestic GDP, employing around 400,000 people. In order to maintain and stimulate the competition of the sector of high economic importance, as well as the competitiveness of domestic actors, the GVH formulated several legislative proposals in its draft report.