The Office of Fair Trading has launched an investigation into hotel rooms that are sold online thought to be involved in price fixing.
The investigation is the result of a complaint from Skoosh.com, a discount website. The website reported that it was forced to offer certain rooms at a standard price. Skoosh stated that they opened wide discounts and as a result hotels would call them and threaten legal action against them if they did not charge more. An employee from the site stated that they were told to increase their prices or stop offering hotel rooms for each hotel that complained.
Internet sales of hotel rooms have blown up in the past few years dominated both by the websites that receive commissions when they sell rooms and by hotel businesses themselves. The result is customers can shop around and find the best price for certain hotel rooms.