Hotel Chain Agrees to Stop Sharing Price Information | NBC Connecticut

Hotel Chain Agrees to Stop Sharing Price Information

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    NEWSLETTERS

    Jodi Hernandez
    Police arrested five men for soliciting prostitution at the Motel 6 in Walnut Creek last night.

    Call it a victory for travelers tired of spending too much money on hotels.

    Connecticut's Attorney General announced Thursday that the La Quinta hotel chain has formally agreed to to stop sharing price information with other hotels.  The practice, common among hotel chains, is considered anticompetitive because it can be used to fix prices.

    The practice known as "call-arounds" occurs when employees call other hotels to find out and exchange current room rates.

    Hotel chain, La Quinta, has 5 hotels in Connecticut and hundreds more across the country.

    The investigation, which is ongoing, revealed that certain competitors of La Quinta have used call-around information to raise prices on a regular basis -- violating Connecticut's Antitrust Act.

    "This agreement must be a wake-up call to the entire hotel industry -- signaling that call-arounds to set room prices are illegal and must be stopped," Blumenthal said.

    "Such call arounds interfere with the competitive market -- potentially fixing prices and increasing costs for consumers, " Blumenthal added.

    Investigators hope the agreement will lead to more competition in the hotel industry in Connecticut and nationally.

    The 5 hotels located here are La Quinta Inn in Windsor Locks, La Quinta Inn & Suites in New Britain, La Quinta Inn & Suites in New Haven, La Quinta Inn & Suites in Stamford and La Quinta Inn & Suites of Stonington.