Dan Coatsworth, head of markets at AJ Bell, said: “An already difficult period for the hotels sector given the geopolitical backdrop has been compounded by the spectre of regulatory action.
“The UK competition authority (CMA) is to probe several chains over information sharing.
“Data and new tools to analyse data can be valuable to consumer-facing businesses, allowing them to understand their customers and co-ordinate their services and pricing accordingly.
“However, Holiday Inn owner InterContinental Hotels, Hilton and Marriott are under investigation by the UK competition regulator on the basis they may have exploited and shared data in a way that went outside of the rules.
“Their data provider CoStar is also captured by the probe for the provision of the pricing algorithms which helped the businesses set their charges.
“The CMA has been active in recent years, making interventions across various industries, and this latest move suggests the regulator is keen to stay on top of a fast-moving world where companies’ use of technology could have significant implications for consumers.”
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