This April 25, 2020 photo taken from a Mainichi Shimbun helicopter shows Tokyo Skytree, left, with Mount Fuji in the background. (Mainichi)
TOKYO (Kyodo) — Japan’s antitrust watchdog on Thursday warned more than a dozen high-end Tokyo hotel operators over regularly sharing their room rates and occupancy data, deeming the practice as bordering on cartel behavior that could amount to violation of the antimonopoly law.
The Japan Fair Trade Commission urged a total of 15 companies including those operating Hotel New Otani Tokyo and the Imperial Hotel Tokyo to halt such practices, with the watchdog becoming increasingly vigilant against unfair price gouging as room rates soar nationwide.
It also called on two associations joined by hotels across Japan to ensure that their members comply with the antimonopoly law, suspecting that such information-sharing may be a customary practice within the industry.
Officials of the hotels in question have held meetings known as “Front Reservation” nearly every month, prior to which they would share undisclosed information via email, such as room occupancy rates, average room rates, and future room rate setting policies.
Other companies that received the warnings included those operating The Okura Tokyo, the Palace Hotel Tokyo, the Hyatt Regency Tokyo and Keio Plaza Hotel Tokyo.
The average room price of 11 hotel operators listed on the stock market in the July-September quarter of 2024 stood at 15,537 yen ($107), about 1.8-times higher than the level in 2021 amid the coronavirus pandemic, according to Tokyo Shoko Research, a credit research company.
AloJapan.com