28. september 2016
Upon notification from the Danish hotel organization, Horesta, the Danish Competition Council has declared that according to the facts in its possession, an anticipated modernization of Horesta’s benchmarking system “Horestas Videnbank” falls outside the scope of the prohibition against anticompetitive agreements in Section 6 of the Danish Competition Act.
“Horestas Videnbank” is a benchmark division of the hotel organization, which collects certain information, aggregates that information and provides general market reports to hotels and other interested parties as well as traditional benchmarking reports to hotels in return for provision of the data necessary to compile these reports. After modernization of “Horestas Videnbank” the hotels will have daily access to aggregated data from the previous day.
The decision of the Danish Competition Council is based on all circumstances of the case, including the content of the exchange of information, its objectives and the economic and legal context of which it forms a part.
Inter alia, the Competition Council took account of the unique characteristics of the hotel market (a large number of market participants with a large number of differentiated products as regards standards, quality and services etc.) and of the fact that prices are typically set in advance and through different means, such as agreements with corporate groups or travel agencies, loyalty programs etc.
As Horesta had also taken the necessary precautions to ensure that no individual hotel can be identified from the aggregated data, as well as the necessary precautions to prevent their staff from disclosing data relating to individual hotels, the Competition Council found it inconceivable that the anticipated modernization of the benchmarking system would have restriction of competition as its direct or indirect object or effect.
Read the Competition Council's decision (Danish)
For further information, please contact communications manager Hanne Arentoft, +45 41 71 50 98.
Last updated: 28. september 2016