- Trip.com Group announced it would end exclusive hotel arrangements and lowest-price demands after regulators imposed penalties of 5.18 billion yuan ($770 million) for monopolistic practices.
- The 19 corrective measures represent a sweeping overhaul, giving merchants freedom to work with rival platforms, set room rates, and choose promotions.
- Trip fully accepted the ruling and described the penalties as a 'profound warning and lesson'.
- Trip required exclusive deals from 'special-label' hotels and the lowest prices from 'gold-label' and unlabeled hotels.
- If hotels listed lower prices elsewhere, Trip used automated pricing tools or manual intervention to reduce the rate on Ctrip.
- Trip enforced compliance through reduced traffic, label removal, and deductions; the practices restricted competition and consumer interests.
Trip.com has been penalized 5.2 billion yuan ($770 million) by China's State Administration for Market Regulation for monopolistic practices in the online hotel-booking sector. The company is required to surrender 1.66 billion yuan in illegal gains and implement 19 corrective measures to enhance competition.2
Since 2020, Trip.com has been accused of abusing its dominant market position by enforcing exclusive agreements with hotels, particularly in its 'special-label' tier, which limited their ability to work with other platforms. The regulator found that Trip required hotels to offer the lowest prices online and used automated tools to adjust prices on its platform if competitors listed lower rates.
The regulator's findings indicated that these practices not only restricted hotels' operational freedom but also harmed competition and consumer interests. Trip has accepted the ruling, describing the penalties as a 'profound warning and lesson' for the company. The corrective measures will allow hotels greater autonomy in pricing and partnerships, marking a significant shift in Trip's business model.3
The company aims to restore trust and comply with regulatory expectations, as it faces a critical juncture in its operations within China's competitive travel market.
“Trip described the penalties as a 'profound warning and lesson' as it agreed to 19 corrective measures. The reforms give hotels freedom to set room rates and work with rival platforms, ending the requirement for exclusive deals and lowest-price demands.”
