Collusion Appears to Have Continued for Decades
Hotels Likely Decided on Room Rate Increases by Comparing with Others
Fifteen luxury hotels in Tokyo, including the Imperial Hotel (Deikoku Hotel) and Hotel New Otani, have been found to have shared important information and colluded on room rates, prompting the Japan Fair Trade Commission to issue a warning.
On the 17th, Asahi Shimbun reported, "Sales representatives from the 15 hotels held monthly meetings to exchange data on room occupancy rates and average room prices, and also discussed future room rate setting policies."
Asahi reported that these meetings appear to have continued for several decades. The Japan Fair Trade Commission judged that the information shared by the hotels included confidential non-public data, and that the exchange of information could violate the Antimonopoly Act and constitute collusion (cartel).
It also considered the possibility that each hotel decided on room rate increases by comparing occupancy rates and prices of other hotels. The Fair Trade Commission has already notified each hotel with a warning demanding measures to prevent recurrence and plans to decide on the final warning after collecting opinions.
Asahi noted, "The Fair Trade Commission seems to intend to clarify through the warning that (information sharing) is a violation and to prevent a situation where the entire hotel industry raises prices together." It added, "The Fair Trade Commission has been strengthening vigilance, considering that information sharing may have been widespread not only among luxury hotels but also business hotels and hotels outside Tokyo."
According to Tokyo Shoko Research, a corporate credit research firm, the average room price of 11 business hotels and others from July to September last year was 15,537 yen (about 155,000 won), an 86.7% increase from 8,320 yen (about 83,000 won) in 2021 when COVID-19 spread.
Asahi reported, "This year, due to events such as the Osaka-Kansai Expo and the World Athletics Championships held in Tokyo, the upward trend in room rates and occupancy rates at major city hotels is expected to continue."
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