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 plans to warn 15 operators of high-end Tokyo hotels for regularly communicating their respective room prices and occupancy rates, deeming the practice as approaching cartel behavior, a source close to the matter said Thursday.
The properties subject to the warning include the Hotel New Otani, Hyatt Regency, Imperial Hotel Tokyo, Keio Plaza Hotel Tokyo, The Okura Tokyo, and the Palace Hotel Tokyo.
The Japan Fair Trade Commission has notified the firms of its impending issuance of administrative guidance that will call for them to cease the practice. The move comes as hotel room rates soar in the Japanese capital due to an influx of overseas visitors.
Sales representatives working for the companies gathered nearly every month to share information, including plans for future room prices, the source said, noting the hotels have been holding meetings for decades.
The watchdog’s probe did not allege cartel-like collusion, such as collectively raising or setting room rates, and said the gatherings are no longer held, according to the source.
The average room price of 11 listed hotel operators surveyed by Tokyo Shoko Research in the July-September quarter of 2024 stood at 15,537 yen ($110), about 1.8-times higher than the level in 2021. Many hotels in Japanese metropolitan areas saw room rates rise to record highs in fiscal 2024 ended this March, according to the credit research firm.
AloJapan.com