China fines Ctrip ¥5.18B on July 25 for hotel booking monopoly. Penalty includes ¥1.22B refunds, ¥1.66B disgorgement, ¥3.52B fine. Ctrip ordered to stop.
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Chinese Travel Giant Ctrip Fined ¥5.18 Billion for Monopoly Practices – Here's What They Did
China's market regulator has handed down a record-breaking fine to Ctrip, the country's largest online travel platform.
On July 25, the State Administration for Market Regulation (SAMR) announced that Ctrip has been penalized ¥5.18 billion (about $710 million) for abusing its dominant market position in China's online hotel booking platform market.
The total includes:
¥1.22 billion – refunded to hotels (forced deductions returned)
¥1.66 billion – disgorgement of illegal gains
¥3.52 billion – fine, calculated as 7.5% of Ctrip's 2025 China revenue of ¥46.96 billion
What exactly did Ctrip do?
According to the regulator, since 2020, Ctrip used its market dominance to force hotels into two types of unfair arrangements:
1. Exclusive deals for "Special" hotels
Ctrip created a tiered system for hotels on its platform:
"Special" (特牌) – top-tier hotels that get maximum traffic and promotions
"Gold" (金牌) – mid-tier hotels
"Unbranded" (无牌) – basic listings
For "Special" hotels, Ctrip required exclusive cooperation – meaning these hotels could not list their rooms on competing platforms like Meituan or Qunar. In exchange, they received more visibility and traffic from Ctrip.
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2. Forcing "lowest price" guarantees
For "Gold" and "Unbranded" hotels that did list on multiple platforms, Ctrip required them to offer the lowest prices on Ctrip – lower than anywhere else online.
If Ctrip's system detected a lower price on a competitor's site, it would automatically adjust the hotel's Ctrip price downward using tools like a "price adjustment assistant" and "listing tool." Hotels that didn't comply risked reduced traffic, removal from the platform, or even deductions from their deposit accounts.
Lower Prices for Travelers? Not Exactly
For travelers, this might sound like a good thing – lower prices, right?
But regulators say the practice actually hurts consumers in the long run by:
Restricting hotel operators' ability to set their own prices
Reducing competition between platforms
Creating an unhealthy "race to the bottom" that harms service quality
Limiting consumer choice
The regulator found that Ctrip's behavior excluded and restricted market competition, violated hotel operators' pricing rights, and ultimately damaged consumer interests.
SAMR has ordered Ctrip to:
Stop the illegal practices immediately
Fully refund the ¥1.22 billion in forced deductions from hotels
Submit a public remediation plan under public oversight.
Ctrip is also required to make its corrective measures public and ensure hotels and consumers are protected going forward.
Source: 九派新闻
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