The UK’s competition regulator has opened a formal investigation into three global hotel groups over concerns about potential information sharing linked to pricing data. The inquiry by the Competition and Markets Authority (CMA) will examine whether the use of a shared hotel data platform may have reduced competition in the UK hospitality market.
The CMA said it is assessing whether data provided through a hospitality analytics service could have allowed rival hotel operators to better predict each other’s commercial behaviour.
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The regulator has not reached any conclusions and stated that the investigation is at an early stage.
Data platform under review
At the centre of the competition probe is the use of the STR data platform, operated by CoStar Group. STR provides aggregated market data to hotels, including information on occupancy levels and average daily room rates.
The CMA is investigating whether the exchange of this information between competing hotel businesses may have reduced uncertainty around pricing and capacity decisions. In competitive markets, uncertainty about rivals’ actions is a key driver of price competition.
The regulator stressed that the investigation does not imply that competition law has been breached. It will now gather evidence from the companies involved and assess how the data was collected, shared and used.
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By GlobalDataFocus on hotel pricing and competition law
The case centres on compliance with the Competition Act 1998, which prohibits agreements or practices that prevent, restrict or distort competition in the UK.
Competition authorities globally have increased scrutiny of data sharing and algorithm-driven pricing. Regulators are examining whether advanced analytics tools can, in some cases, make it easier for competitors to align prices without direct communication.
The CMA’s review reflects broader concerns about how digital platforms and shared market intelligence tools affect competition, particularly in sectors such as travel and hospitality where pricing is dynamic and data-driven.
Next steps in the investigation
The CMA has the power to request documents, conduct interviews and analyse data as part of its investigation. If it identifies evidence of anti-competitive conduct, it may issue a formal statement of objections.
Companies found to have breached UK competition law can face fines of up to 10% of global annual turnover.
The regulator emphasised that its investigation remains ongoing. The hotel groups and CoStar have indicated they will cooperate with the inquiry.
For the international hotel sector, the probe signals continued regulatory attention on pricing data, market intelligence tools and competition compliance.
As digital systems play a larger role in revenue management, competition authorities are likely to maintain close oversight of how commercial data is shared and applied across markets.
