Duff on Hospitality Law

This week’s Update features one of several stories published this past week regarding the escalating fight between renegade airline Ryanair and several of the large online travel platforms.  We’ve also included a few stories on GDS platforms – one on Travelport and the other on one airline’s well-documented push to modernize GDS’ (and their users’) practices.  I expect to increase our coverage of GDS this next year, as I anticipate seeing a number of changes coming out of the GDS world over the next year or two.  Enjoy.

• • Ryanair’s OTA War Continues to Escalate.  Readers of our weekly Update are familiar with Ryanair’s ongoing battle with certain major OTAs (primarily Booking Holdings’ various platforms).  In response to recent criticisms by Ryanair over the platforms’ allegedly unjustified fees and charges (or perhaps pending U.S. litigation by Ryanair against Booking Holdings), the platforms (Booking.com, Kayak and Kiwi) have removed entirely the airline’s flights.  According to Ryanair, the airline expected to take a short term hit on revenue as a result of the “pirates” (Ryanair’s term, not ours) actions.  In response, Ryanair intends to make its lowest fares available on its own booking platform and those of “honest/transparent” OTAs.  Is there a lesson here somewhere for hoteliers? 
    
    
  • ASTA Takes (Again) Its Complaints Over American Airlines to the Department of Transportation.  The ongoing battle between the American Society of Travel Advisors (ASTA) and American Airlines continues.  In a December 20 filing, ASTA again asked the U.S. Department of Transportation (DOT) to investigate the airlines’ practices and to require American to restore the travel content that it previously removed (and presumably, made available only to travel agents via NDC connections).  According to ASTA, many of the same problems that existed immediately following American’s transition to NDC in April of last year persist today.  American in turn has argued that ASTA and its members need to modernize and move away from legacy technology (legacy GDS systems). 
    
    
  • Third Party Platforms Voice Their Support for Junk Fee Legislation.  In advance of the U.S. House Committee on Energy and Commerce’s consideration of proposed legislation on resort fees (the legislation passed out of the Committee on a 44-0 vote), the Travel Technology Association (membership comprised of OTAs, GDSs and other platforms) submitted a letter for the Committee’s consideration.  According to Association CEO and President, Laura Chadwick, the legislation will help “reign in their [hoteliers] troubling resort fee practices.”  Interestingly, while the Association favors the proposed legislation, the Association also asked to add provisions holding hoteliers (not the platforms) responsible for failing to display correct resort fee information.  A complete copy of the Association’s letter is available here.