Apr 17, 2019

Online travel agency alleges hotel collusion

Photo: Scott Olson/Getty

Lawyers for 6 major hotel chains on Wednesday asked a judge to dismiss a lawsuit by an online travel agency accusing them of colluding to stifle bidding for rooms.

What's happening: TravelPass Group accused chains like Hilton, Hyatt and Marriott of squeezing small internet travel agencies out of the online market for room booking. The case comes as public pressure is mounting against the concentration of market power across industries, from technology to agriculture, airlines and banking.

  • In the hotels case, TravelPass says that starting in 2014, the chains worked together to block it and other online agencies from bidding on the internet search keywords that underlie the room booking business.

How it's supposed to work: When you type words into your search engine — like, say, Hilton and Bahamas — an invisible bidding war takes place among hotels and agencies to fill your desire. Ads appear above and alongside your search.

  • But Austin Lowe, a lawyer for TravelPass, tells Axios that the alleged scheme resulted in its ads not appearing. As a result, its $165 million valuation cratered to $25 million, the lawsuit says.

In the hearing today, the hotels asked a judge to dismiss the suit, or to move it to another jurisdiction. Hyatt, Hilton and Marriott all declined to comment.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Go deeper (2 min. read)ArrowUpdated 39 mins ago - Health

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,498,849 — Total deaths: 346,306 — Total recoveries — 2,233,180 — Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,662,768 — Total deaths: 98,223 — Total recoveries: 379,157 — Total tested: 14,604,942 — Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answered — Traveling, asthma, dishes, disinfectants and being contagious — Masks, lending books and self-isolating — Exercise, laundry, what counts as soap — Pets, moving and personal health — Answers about the virus from Axios experts — What to know about social distancing — How to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 42 mins ago - Politics & Policy

LATAM Airlines files for U.S. chapter 11 bankruptcy

A LATAM air attendant aboard one of the company's planes in March. Photo: Kike Calvo/Universal Images Group via Getty Images

LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the United States, Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.

Why it matters: Latam is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.

Go deeper (<1 min. read)ArrowUpdated 2 hours ago - Economy & Business