No.

27
May 2014

Network Support Department

Communications, Planning and Economic Monitoring Sub-Directorate
Economic and Price Monitoring Bureau

Odile Lefranc1

The growth of the online travel market

(consumer market and consumer complaints)

By fostering the emergence of new players such as online travel agencies and price
aggregators, the Internet has radically altered the travel market. In Europe, online travel
sites currently account for 42% of the travel market. In France alone, it was worth more
than €12.4bn in 20132. Consumer behaviour has helped drive growth, which has been
continuous since 2006. In 2013, nearly 30 million French citizens (62% of the population)
used websites to prepare their holidays3.

The growth in the online travel market has altered the traditional value chain that separates
travel producers (airline companies, hotels, car rental agencies, etc.) from the creators and
distributors of travel packages (travel agency networks, tour operators, etc.). By facilitating
online distribution, the Internet has allowed travel producers to introduce their own direct
distribution, thereby diversifying their distribution channels.

Although there has been an overall downward trend in the volume of total complaints
(-2.3% since 2011), the number of complaints in the travel sector is on the rise, particularly
with respect to online travel (35.9% of sector complaints in 2013)4. This is also true at
European level. In 2013, the European Commission and the national authorities
responsible for consumer affairs observed that 382 out of 552 travel websites examined did
not comply with European consumer legislation5.

1
Chargée d'études at the Economic and Price Monitoring Bureau (1B)
2
Xerfi study, FEVAD
3
Opodo Barometer completed in 2013 by the Raffour Interactif consultancy
4
Source and calculations: DGCCRF, complaints register, April 2014
5
Press release of 14 April 2014, European Commission
1
1. The online travel market has been expanding since 2006, and
has introduced new consumer patterns and new players.
For several years now, Internet-based distribution systems have radically changed how travel
products are sold. There are a growing number of Internet users. Internet users now have the
possibility to easily access a wide array of destinations and travel products from their
computer screens. Above all, they can make their selections using a broad range of criteria
and can locate increasingly specific information. The growth of the online travel market as
well as the development of new, Internet-based consumer patterns have given rise to new
stakeholders who are shaking up the traditional relationships within this sector.

1.1. The online travel market has been expanding since 2006

Despite a 38% drop in spending on travel by French citizens between 2001 and 2012 (in
2012, average annual spending on travel came to €2,000 per household), the online travel
market has continued to grow6. With a 35% market share of e-commerce in France in 2012 –
i.e. nearly €11.7 billion spent on travel websites – the online travel sector is booming7.

Chart 1

Marché
Onlinede l'e-tourisme
travel market
(in milliards
(en billions ofd'euros)
euros)

14
12,4
11,7
12
10,9

10 9,6

8
8 7

6 5,3
4,2
4

0
2006 2007 2008 2009 2010 2011 2012 2013

Sources: Xerfi study, FEVAD

In 2012, the online travel market grew 7% over 2011. During the same period, the e-
commerce sector grew by 19%8. Although growth slowed somewhat in 2013, the market
continued to be robust, driven by an increasing number of sites and new Internet users. In
2013, the online travel market was estimated at €12.4 billion9.

6
Le nouvel économiste, 14 August 2013
7
Idem.
8
CCM benchmark studies and FEVAD
9
Xerfi consultancy – "Les Agences de Voyage" – January 2014.
2
According to FEVAD, the tourism sector (travel, transportation, hotels) accounted for 40% of
online sales to individuals in 2011, far outdistancing clothing (11% of sales) and appliances10.

Chart 2

Répatition des ventes

Online salesenby ligne par catégorie de
category
produits/services en 2011
of goods/services in 2011
(in % of online sales)
(en % des ventes en ligne)

Tourisme
Travel

Divers
Miscellaneous

Electrodomestique
Appliances

Clothing
Habillement

Beauty, healthcare,
Beauté, flowers,
santé, fleurs, DIY, gardening
bricolage, jardinage

Household
Equipement de furnishings
la maison

Cultural culturels
Produits products

Foodstuffs
Alimentation

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Sources: Xerfi, Competition Authority and FEVAD

1.2. Growth driven by new consumption patterns

Experts agree that online travel, and mobile travel in particular, are growth industries.

According to the barometer established in 2013 by the Raffour Interactif consultancy, nearly
30 million French citizens (62%) used websites to prepare their holidays.

Of this group, 14.1 million people used the Internet to reserve part or all of their holidays and
used online payment methods. This is an increase of 500,000 people over 2012, and
represents 45% of French holidaymakers in 2013, compared with 44% in 201211.

In 2013, as in the previous year, 20% of those using online travel services also consulted
social networks to prepare their holidays12.

The tendency for Internet users to build their holidays themselves by purchasing each part
separately (train, air travel, hotel, rental car) has pushed online travel agencies to develop
"dynamic packaging" strategies. These allow Internet users greater flexibility with respect to
the length of their stay and the choice of transportation and hotel services.

10
Xerfi, Competition Authority via FEVAD
11
Barometer completed in 2013 by the Raffour Interactif consultancy
12
Idem.
3
Chart 3

Types
Les types of online travel
de produits products
touristiques purchased
achetés in 2011
en ligne en 2011
(in % of Internet users surveyed)
(%des internautes enquêtés)
40%
35%
35%
31%
30%

25% 23%
20%
20% 17%
14%
15%

10%

5%

0%
Billets
Trainde Hôtels
Hotels Autres
Other Locations
Holidayde Séjours en
Holidays Séjours
Holidaysà
train
tickets transports
transport vacances
rentals inFrance
France l'étranger
abroad
(avion,
(air, boat,
etc.)etc.)
bateau,

Sources: 7th FEVAD and Médiamétrie barometer on the buying patterns of Internet users, June 2011

According to a survey conducted in May 2011 by the E-Commerce and Distance Selling
Business Association (FEVAD), train tickets and hotel reservations are the main travel
products purchased by Internet users.

1.3. The online travel market stakeholders – online travel agencies come to the fore

The rapid growth in the online tourist market has upended the traditional value chain
separating travel producers (airline companies, hotels, car rental agencies, etc.) from the
creators and distributors of travel packages (travel agency networks, tour operators, etc.).

1.3.1. Online travel agencies

Within a decade and a half, online travel agencies have become key players in the online
travel market. According to a recent study by PhoCusWright, the share of online travel as a
percentage of total travel bookings is nearly 60% in the US, compared with more than 40% in
Europe13.

In 2012, three American online travel agencies, Expedia, Priceline and Orbitz, were among
the ten biggest travel agencies. These firms also have brands in Europe.

13
Figures: PhoCusWright, 2012
4
 Table 1: Online travel agencies' ranking among the top ten travel agencies

Rank
First place Third place Eighth place

Company Expedia Priceline Orbitz*

Expedia,
Hotels.com, Orbitz For Business,
Booking.com, HotelClub, CheapTickets,
Egencia, TAAP
Agoda, the Away network,
Main brands (affiliate
Rentalcars eBookers (Europe)
programme),
Trivago

$34bn $28.5bn $11.2bn

2012 turnover

$280m $1.42bn
2012 net profit Net loss: $302m

Sources: * Travel Weekly Power List, wwww.veilleinfotourisme.com, L’Écho touristique - 15 July 2013

According to a study by ComScore, in March 2013, nearly 183,000,000 Internet users visited
travel websites in Europe.

Table 2: Ten most visited online travel agencies in March 2013

Websites Unique visitors

(in millions)
Priceline.com 31.419
TripAdvisor 25.684
Odigeo 14.084
Expedia 13.758
SNCF 10.083
TUI Group 8.580
Ryanair 7.977
Deutsche Bahn 7.385
EasyJet 6.271
Travora Media 5.967

Source: ComScore, www.veilleinfotourisme.com

In France, online travel sites and travel guides attract more than 15.2 million Internet users. In
December 2012, these users spent an average of more than 20 minutes online14.

14
Barometer completed in 2013 by the Raffour Interactif consultancy
5
 Table 3: Five most visited online travel agencies in France in December 2012

Websites Unique visitors

(in millions)
Voyages-SNCF.com 6.400
TripAdvisor 2.700
Le Guide du Routard 1.760
Voyage Privé 1.700
Promovacances 1.400
Sources: Médiamétrie/Netrating - Journal du Net, 30 July 2013

1.3.2. Other online tourist market stakeholders

Price aggregators
Following the success of online travel agencies and given the variety of rates quoted, price
aggregators have become important players in the online travel sector. They position
themselves as providers of thorough information on prices of flights, hotels, car rental
agencies, cruise ship agencies and other types of travel offers. They are paid based on the
traffic that they drive towards travel agencies15.

Google has recently introduced Google Hotel Finder, a price aggregator with abundant
criteria for finding a hotel. Information on the site is provided by online travel agencies. The
economic model is pay per click based on a percentage of the room price (less than 1%),
rather than on the reservation, which includes a commission (generally more than 15%)
negotiated between hotels and online travel agencies16.

Traditional travel agencies and tour operators

Given the increasing popularity of online travel agencies, and the disintermediation practiced
by producers distributing their products directly, travel agency networks facing stiff
competition have introduced cross-channel strategies that focus primarily on customer
experience. This offers advantage over brick-and-mortar agencies.

Cross-channel marketing encourages synergy between channels to make purchasing as easy

as possible for consumers. In other words, it allows consumers to make purchases anywhere
and at any time, providing them with the same shopping experience and level of service,
regardless of the point of sale.

A multi-channel strategy increases the number of sales channels, which may include the
Internet, social networks, catalog sales, telephone sales, mobile devices, etc.

For example, the tour operator Look Voyages already derives 15% of its sales from cross-
selling17. The company wishes to take this strategy further by doubling its network of brick-
and-mortar agencies by 202018. Tour operators are proceeding with strategic alliances. Some
(Thomas Cook, Fram, TUI, etc.) are pursuing diversification upstream of their core business
in order to have access to distribution margins.

According to a study by Xerfi, travel agencies' turnover fell by 0.5% in 2013. Fee increases
by the operators (+0.5%) did not offset the drop in the number of reservations 19. This is

15
Le Monde, 9 March 2011.
16
Journal du Net, 21 March 2013.
17
Cross-selling is the action or practice of selling an additional product or service to an existing
customer.
18
Xerfi consultancy – "Les Agences de Voyage" – January 2014.
19
Idem.
6
caused by poor economic conditions combined with the rise of disintermediation and
heightened competition within this sector.

Producers (airline companies, hotel chains, rental agencies)

Easier access to information thanks to social networks (Facebook, Google+, Tumblr, etc.) and
travel information sites like TripAdvisor mean that travelers can break up their trips by
purchasing services directly from suppliers without involving an intermediary. In addition to
travel services, these suppliers offer direct online reservation services.

Eighty-four percent20 of tourists, regardless of their origin, select a hotel from the Internet.
Nevertheless, the Internet is primarily used for information purposes, since 59% 21 of
reservations are still made over the telephone.

Airline companies such as Air France are focusing on selling travel products online, and
expect online sales to rise from €2bn (2011) to €3–3.5bn by 201522. Accor is planning to
invest €30m between now and 2016 on distribution systems, with the goal of earning 50% of
their revenues from online sales23.

2. Online travel revenue distribution tends to favour online travel

agencies

In 2013, the online travel market was showing signs of maturity. According to a study by the
American firm PhoCusWright, the rate of penetration of online sales is expected to reach 48%
in 201524, whereas online travel services in France are expected to generate €23bn in
turnover, which would give France an 18% share25 of the European market.

The online travel sector is growing faster than the travel sector as a whole. For the period
2005-2013, the global travel sector grew by an annual average of 0.1%, whereas the online
travel sector doubled during the same period.

Table 4: Key travel figures

Average for 2005-
Indicators analysed
Units 2012 2013 2013
Annual variations
Sector turnover 2.4% -1.5% 0.1%
(in percent)

Annual variations
E-travel market 7.0% 6.0% Doubled
(in percent)
Price of all-inclusive Annual variations
tourist trips (in percent) 1.2% 0.5% 0.1%
(Data calculated based on market variations determined by FEVAD. Estimations by Xerfi – "Les agences de
voyage", January 2014.)

20
www.veilleinfotourisme.com
21
Idem.
22
Figures: Sia-Partners, Q3 2013
23
Idem.
24
L’Écho touristique, 20 December 2013
25
Idem.
7
 2.1. Online travel agencies' share in the growth of the travel sector turnover
worldwide

As we can see in Chart 4, online travel agencies and tour operators are driving growth in the
online travel sector. The market's largest online travel agencies experienced double-digit
growth between 2007 and 2015; these include Priceline (+45%) and Ctrip (+34%)26.

Chart 4
Growth
Taux derates of the main
croissance online travel
des principales OTAagencies (2007–2012)
entre 2007 et 2012

Thomas Cook

Tui Travel

Transat

Rate
Taux deofcroissance
growth

Expedia

Ctrip

Priceline

0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 35,00% 40,00% 45,00% 50,00%

Source: Xerfi Global with companies’ annual reports – June 2012

Booking.com, which premiered its first ad campaign on American television in early 2013,
increased its European market share from 25% to 31% in 2012, whereas the market share of
Expedia remained steady at 15%27.

2.2. The structure of the online travel market

2.2.1. At European level

A growing number of European citizens are purchasing their travel services online. In 2012,
32% of European consumers used the Internet to book airline tickets or a hotel stay28. Travel,
tourism and related sectors account for some 10% of the EU's GDP. Europeans made more
than one billion tourist trips in 2011, 80% of them within the EU29.

At European level, the online travel market soared by 17% in 2011, and this figure is expected
to be 10% in 2012. Online travel agencies led the charge (+22%), whereas supplier websites
experienced somewhat more modest growth (+15%)30.

26
Source: Xerfi Global with companies’ annual reports – June 2012
27
www.veilleinfotourisme.com
28
2012 Eurostat survey of online purchasing
29
Idem.
30
Figures: PhoCusWright - 2012
8
2.2.2. In France
In 2012, growth in online travel sales in France was partially driven by the rail, airline and
hotel segments. Supplier websites, which were responsible for €10.2bn in sales in 2012,
enjoyed a larger market share than that of online travel agencies (€7.5bn), and the traditional
distribution network held up. Growth of the French market is expected to slow to +7% in both
2013 and 201431.

3. A steady rise in consumer complaints in the online travel sector

since 2012
The complaints register used by the General Directorate for Competition Policy, Consumer
Affairs and Fraud Control (DGCCRF) tracks complaints made by consumers to DGCCRF
staff both in the various regional agencies (i.e. the Directions Départementales de la
Protection des Populations – French Consumer Protection Agency, or the Directions
Départementales de la Cohésion Sociale et de la Protection des Populations – French Social
Cohesion and Consumer Protection Agency, depending on the département) and to the
National Call Centre (CNA) in Montpellier that fields calls for the “Info Consommateurs”
help desk on 3939.

Since 2008, the data entered into the complaints register is sorted by product and service and
by type of complaint. Since the first half of 2013, the register's classification method has been
changed to provide greater detail and clarity, in order to bring it into line with the
Commission Recommendation of 12 May 2010, and to adapt to regulatory and technological
changes.

In 2013, the DGCCRF registered 85,963 consumer complaints (compared with 87,452 in
2012), a volume decrease of 1.7%. While there was an overall drop in the number of
complaints for all sectors combined, the trend was reversed in the travel sector, particularly
with respect to online travel.

3.1. Consumer complaints in the travel sector and the online travel segment

The number of consumer complaints in the travel sector increased by 5.8% in 2013, rising
from 4,999 complaints in 2012 to 5,293 complaints in 2013 (5,010 complaints in 2011). This
increase was partially a result of the surge in complaints relating to online travel. These
increased from 1,036 complaints in 2011 to 1,293 complaints in 2012, and reached 1,900
complaints in 2013 – i.e. nearly doubling in three years' time.

Table 5: Number of complaints in the travel sector and in the online travel sector since
2011

Change Change
Change Change
2012/2011 2013/2012
Sector 2011 2012 2012/2011 2013 2013/2012
(in no. of (in no. of
(in %) (in %)
complaints) complaints)
Travel 5,010 4,999 -11 -0.2% 5,290 291 5.8%
Online
1,036 1,293 257 24.8% 1900 607 46.9%
travel
Source and calculations: DGCCRF, complaints register, April 2014

31
Idem.
9
In 2013, complaints in the online travel sector represented 35.9% of total complaints in the
travel sector as a whole, compared with 25.9% in 2012 and 20.7% in 2011. For 2013, this
represented an increase of more than 15 points over 2011. Whereas complaints concerning the
travel sector as a whole only increased by 5.8% between 2012 and 2013, they grew by 49.8%
for the same period with respect to online travel.

Table 6: Share and change in complaints in the travel sector since 2011

Change
Change
2011 2012 2013 2012/2011
2013/2012 (in
Sector share in share in share in (in
percentage
% % % percentage
points)
points)
Travel / Total volume
5.5 5.7 6.2 0.2 0.5
of complaints

Online travel / Travel 20.7 25.9 35.9 5.2 10.9

Source and calculations: DGCCRF, complaints register, April 2014

3.2. Travel agencies are the focus of the largest number of complaints in the travel
sector

In the travel sector, travel agencies draw the largest number of complaints, particularly in the
online travel segment, where the number of complaints has risen sharply in three years' time.
In 2011, online travel agencies were responsible for only 12.4% of the complaints registered
by the DGCCRF for the travel sector as a whole, compared with 22.9% in 2013, an increase
of 10.5 points. The number of complaints (1211 in 2013, compared with 791 in 2012, and 622
in 2011) having to do with online travel agencies grew strongly over these three years
(+53.1% in 2013 compared with 2012).

Hotels and holiday residences were in second place in terms of numbers of consumer
complaints, with 162 complaints in 2013 compared with 160 in 2012 and 106 in 2011.
Nevertheless, this segment represents roughly one tenth of the travel agencies segment in
terms of the volume of consumer complaints.

Seasonal and temporary lessors (118 complaints in 2013, compared with 141 in 2012, and 136
in 2011) were in third place. The number of complaints concerning central hotel booking
offices more than doubled, rising from 41 complaints in 2012 to 93 complaints in 2013.

Between 2012 and 2013, consumer complaints with respect to individuals experienced
exponential growth (+240.9% for the travel sector, +191.3% for the online travel sector), but
remained relatively infrequent in relative terms (fewer than 100 complaints for the online
travel sector).

10
 Table 7: Number of complaints in the travel sector and the online travel sector by
operator

20 11 2012 2012/2011 2013 2013/2012

Change in Change in Change in Change in

Online Online the travel the online Online the travel the online
Operators Travel Travel Travel
travel travel sector (in travel sector travel sector (in travel sector
%) (in %) %) (in %)

All operators
5,010 1,036 4,999 1,293 -0.2% 24.8% 5,290 1,900 5.8% 46.9%
combined
Travel
1,444 622 1,375 791 -4.8% 27.2% 1,671 1,211 21.5% 53.1%
agencies
Hotels and
holiday 585 106 532 160 -9.1% 50.9% 555 162 4.3% 1.3%
residences
Seasonal and
temporary 433 136 382 141 -11.8% 3.7% 293 118 -23.3% -16.3%
lessors
Central hotel
booking 35 26 55 41 57.1% 57.7% 108 93 96.4% 126.8%
offices
Individuals 90 41 66 23 -26.7% -43.9% 225 67 240.9% 191.3%
Source and calculations: DGCCRF, complaints register, April 2014

The share of complaints concerning travel agencies in the online travel sector rose steadily
(cf. Table 8), rising to 63.7% in 2013, compared with 61.2% in 2012 and 60% in 2011.

On the other hand, the share of complaints concerning hotels and residences (8.5%) fell,
losing 3.9 points over 2012.

The share of complaints concerning seasonal and temporary lessors in the travel sector and
the online travel sector also continued to fall (-4.7% in 2013, and -2.2% in 2012) with respect
to online travel.

The share of complaints concerning individuals rose over three years, particularly in the
online travel sector, increasing from 1.8% in 2012 to 3.5% in 2013.

11
 Table 8: Share of complaints in the travel sector and the online travel sector by operator

20 11 2012 2012/2011 2013 2013/2012

Online Online Change in Online Change in

Travel Change in Travel Change in
travel Travel travel the online travel the online
sector the travel sector the travel
Operators sector sector sector travel sector travel
(share sector (in (share in sector (in
(share share (share sector (in (share in sector (in
in %) points) %) points)
in %) in %) points) %) points)

All
operators 100.0% 100.0% 100.0% 100.0% – – 100.0% 100.0% – –
combined
Travel
28.8% 60% 27.5% 61.2% -1.3 1.2 31.6% 63.7% 4.1 2.5
agencies
Hotels and
holiday 11.7% 10.2% 10.6% 12.4% -1.1 2.2 10.5% 8.5% -0.1 -3.9
residences
Seasonal
and
8.6% 13.1% 7.6% 10.9% -1 -2.2 5.5% 6.2% -2.1 -4.7
temporary
lessors
Central
hotel
0.7% 2.5% 1.1% 3.2% 0.4 0.7 2.0% 4.9% 0.9 1.7
booking
offices
Individuals 1.8% 4.0% 1.3% 1.8% -0.5 -2.2 4.3% 3.5% 3 1.7
Source and calculations: DGCCRF, complaints register, April 2014

3.3. Changes in the main reasons for complaints in the online travel sector

3.3.1. Online travel

The main complaint concerning online travel has to do with information made available to
consumers, which represented 35.5% of all reasons in 2013 (cf. Table 9). This share was
lower than in 2012 (47.3%). Service provision took second place in terms of the number of
complaints (328), and represented 17.3% of all complaints. The next-largest group of reasons
in the DGCCRF's register had to do with payment (9.8%), lack of remedy (6.1%) and
reimbursement (5.4%).

Table 9: Primary reasons for complaints in the online travel sector

Number of Number of Number of
Share (in Share (in Share (in
complaints complaints complaints
%) %) %)
in 2011 in 2012 in 2013
All reasons combined 1,036 100.0% 1,293
100.0% 1,900 100.0%
General consumer
information and unfair 379 36.6% 612 47.3% 674 35.5%
clauses
Provision of service 183 17.7% 185 14.3% 328 17.3%
Payment 65 6.3% 73 5.6% 187 9.8%
Lack of remedy 45 4.3% 33 2.6% 115 6.1%
Reimbursement 36 3.5% 11 0.9% 103 5.4%
Source and calculations: DGCCRF, complaints register, April 2014

3.3.2. The primary reasons for complaints concerning online travel agencies in 2013
General consumer information and unfair clauses was also the number one reason for
complaints concerning online travel agencies (37.2% of complaints). Provision of service was
also a significant source of complaints (17.6%). Reimbursement, lack of remedy and payment
accounted for more than 25.3% of consumer complaints.

12
Chart 5

Principaux motifs
Main de réclamations
reasons relatifs
for complaints aux agences de
concerning
online travel agencies in
voyage en ligne en 20132013
(in % of Internet users surveyed)

Other reasons
Autres Motifs
20.0%
20,0% General consumer
Information générale
duinformation
consommateurand
unfair clauses
et les clauses
37.2%
abusives
Reimbursement
Remboursement 37,2%
6.7%
6,7%

Recours
Lack of
remedy
7,2%
7.2%

Payment
Paiement
11.4%
11,4% Provision of
Exécution de la
service
prestation
17.6%
17,6%

Source and calculations: DGCCRF, complaints register, April 2014

3.4. The sweep of travel services organised by the European Commission and the
Member States revealed that, of 552 websites checked, 382 were in breach of European
rules protecting consumers.

3.4.1. The sweep of travel services

A "sweep" is an EU-wide screening of websites, to identify breaches of consumer law and to
subsequently ensure its enforcement.

The sweep is coordinated by the European Commission and run simultaneously by national
enforcement authorities based on the provisions of the Consumer Protection Cooperation
(CPC) regulation.
Given the rising number of consumer complaints at European level about travel websites, the
European Commission and the national enforcement authorities decided to conduct a sweep.

The Travel Services Sweep took place in 27 EU Member States32, Norway and Iceland in June
2013. The "enforcement phase" is still ongoing. This was the 7th sweep since 2007. Websites
offering air travel and accommodation or both were checked.

3.4.2. The main problems detected on travel websites were in line with the main reasons
for consumer complaints concerning the online travel segment in the DGCCRF's
complaints register.
The sweep by the national authorities revealed the following problems:

32
Croatia did not participate in this sweep, as the screening phase (June 2013) took place prior to its
accession to the EU.
13
  A lack of mandatory information on the trader's identity, in particular their email
address, depriving consumers from an effective contact channel. 162 websites (30%)
did not contain this information.
 A lack of clear instructions on how to complain. 157 websites (28%) did not provide
this information.
 Optional price supplements, such as baggage fee, insurance fee, priority boarding, are
not on an “opt-in” basis. This problem occurred with 133 websites (24%).
 The total price of the service is not indicated up front when the main elements of the
booking are first displayed. 112 websites (20%) failed to give this information.

3.4.3. Results
Today, 173 websites have been corrected. Thanks to effective enforcement measures, the total
number of compliant websites is 62% of the total websites checked. 209 websites are subject to
ongoing proceedings, including 52 commitments by traders to correct their websites33.

Moreover, administrative or legal proceedings continue at national level for the 209 websites
which are still not compliant. In addition, certain practices in the travel sector are being further
reviewed so that consumers have all the relevant information and can make informed choices.

3.5. The DGCCRF's actions in the area of online hotel booking

The DGCCRF has initiated proceedings, on behalf of the Ministry for the Economy, against
certain online reservation services in order to obtain a ruling that will put an end to
imbalances observed by DGCCRF staff in relations between certain online central hotel
booking sites and the hotels themselves.

Provisions likely to significantly impair the commercial freedom of the hotels were detected
in contracts, and subpoenas were issued by the DGCCRF with the goal of obtaining a court
ruling concerning the existence of exclusionary barriers to hotels' commercial and pricing
freedom.

For example, the so-called "pricing parity" provision obliges hotels to bring their prices into
line, via the online reservation service, with the lowest price available on its distribution
channels.

Doing so could severely constrain the pricing policy of a hotel, which would no longer be able
to offer occasional discounts without doing the same for prices offered by the online
reservation service. The pricing parity clause would therefore severely impair competition
between distribution channels.

33
Press release, European Commission, 14 April 2014
14
The Economic and Price Monitoring Bureau (1B) of the DGCCRF (Directorate General for Competition Policy,
Consumer Affairs and Fraud Control) establishes and introduces measures to bolster economic transparency of
the manufacturing and marketing processes for goods and services. It is particularly active in the area of price
analysis, as well as in observing how prices and margins are formed, in connection with other competent
observatories in these areas. It also produces economic studies for the Directorate and is tasked with its in-house
documentation and economic monitoring responsibilities. Lastly, it carries out statistical analyses of the
consumer complaints register.

Ministère de l’économie, du redressement productif et du numérique - DGCCRF

Bureau de la veille économique et des prix (1B)
Teledoc 052
59 boulevard Vincent Auriol
75703 PARIS CEDEX 13
FRANCE

E-mail: Bureau-1B@dgccrf.finances.gouv.fr

15
Appendix 1 – Table 10: Number of websites checked by country in 2013 at EU level

Travel services sweep Websites

compliant as
Websites of 3 April
Websites Websites Websites
Websites compliant 2014, as a
Country already with subject to
checked34 as of 3 percentage of
compliant confirmed ongoing
April the websites
irregularities proceedings checked in
201435
2013
Austria 9 3 6 4 5 44%
Belgium 28 11 17 18 10 64%
Bulgaria 17 17 0 17 0 100%
Cyprus 14 4 10 4 10 29%
Czech Republic 14 5 9 7 7 50%
Denmark 10 7 3 9 1 90%
Estonia 11 2 9 6 5 55%
Finland 10 0 10 0 10 0%
France 33 0 33 15 18 45%
Germany 33 19 14 22 11 67%
Greece 10 2 8 6 4 60%
Hungary 8 5 3 8 0 100%
Iceland 10 0 10 9 1 90%
Ireland 26 5 21 12 14 46%
Italy 17 9 8 10 7 59%
Latvia 12 0 12 1 11 8%
Lithuania 16 11 5 12 4 75%
Luxembourg 11 5 6 7 4 64%
Malta 10 3 7 8 2 80%
Netherlands 41 1 40 33 8 80%
Norway 32 28 4 32 0 100%
Poland 17 12 5 14 3 82%
Portugal 10 6 4 6 4 60%
Romania 10 3 7 10 0 100%
Slovakia 9 2 7 6 3 67%
Slovenia 14 2 12 8 6 57%
Spain 32 8 24 18 14 56%
Sweden 14 0 14 11 3 79%
United Kingdom 74 0 74 30 44 41%

Total 552 170 382 343 209 62%

34
Websites offering air travel and accommodation or both were checked; a website offering both services
was counted twice. After the initial check 6 websites discontinued their operations and no longer
exist: 3 in Cyprus, 2 in Poland, 1 in Slovakia.
35
Figures do not include commitments from traders in pending cases.
Sources: European Commission – April 2014.
16