Great news for small businesses and savvy travellers in South Africa! The Competition Commission and Booking.com have reached an agreement that promises to shake up the accommodation market, benefiting both small businesses and consumers alike.

Previously, Booking.com had strict rules in place that required hotels and guesthouses to offer the same or even lower prices on Booking.com as they did on other websites, including their own. This left many small businesses with little flexibility, making it difficult for them to offer better deals directly to customers.

But that’s all changing now. With these restrictive rules lifted, accommodation providers can finally offer lower prices on their own websites, giving them more control over their pricing and the ability to attract direct bookings. For consumers, this means the possibility of scoring better deals by booking directly through a hotel or guesthouse’s website, encouraging more competition and potentially driving prices down across various booking platforms.

Booking.com has also committed to launching a major support program specifically designed to help small and medium-sized businesses, particularly those owned by historically disadvantaged people or communities. This initiative will focus on promoting these businesses and increasing their visibility, helping them secure more bookings and grow in a competitive market.

This agreement is part of a broader effort by the Competition Commission to ensure fairness in the digital marketplace. By levelling the playing field, the Commission aims to give smaller businesses a better chance to compete and thrive, while also ensuring that consumers have access to better prices and more choices when booking their accommodations online.

This comes after a comprehensive investigation by the Competition Commission that began in May 2021. The probe looked into how Business-to-Consumer (B2C) online platforms—ranging from travel booking sites to online shopping and food delivery apps—were impacting competition, particularly for small businesses and historically disadvantaged groups.

After almost two years of in-depth research, the Commission released its final report in July 2023, revealing that certain practices on these platforms were indeed stifling competition. The Commission then recommended changes aimed at increasing the visibility of smaller South African businesses.

Main Image: The Venue Report