Xin Hua Cai Jing·2025-06-19 12:53Core Viewpoint - The online travel agency (OTA) Ctrip is facing controversy over its "Price Adjustment Assistant" feature, which allows the platform to unilaterally modify hotel room prices without merchant consent, leading to complaints from hotel operators about being forced into unfavorable pricing situations [2][3][5]. Group 1: Ctrip's Market Position - Ctrip holds over 50% market share in the domestic OTA market as of 2021, and it is projected to maintain over 56% market share in 2024, indicating its dominant position in the industry [5]. - The platform's strong market presence contributes to a power imbalance, making it difficult for merchants to resist or exit partnerships despite unfavorable terms [5][6]. Group 2: Price Adjustment Assistant Controversy - The "Price Adjustment Assistant" is described as an automated pricing tool that adjusts hotel prices to ensure Ctrip remains competitive, often without merchant approval [2][3]. - Merchants report that Ctrip can change promotional pricing and discounts without their consent, leading to significant discrepancies between expected and actual room prices [3][4]. - The automatic nature of the tool has led to concerns that it could result in unsustainable pricing for hotels, potentially harming consumers as well [4][6]. Group 3: Industry Dynamics and Competition - The competitive landscape in the travel industry is intensifying, with other platforms like JD.com and Meituan also entering the market, which may further pressure Ctrip and its pricing strategies [7][8]. - The ongoing "involution" in the industry, characterized by aggressive pricing strategies, is pushing platforms to prioritize short-term gains over sustainable practices, affecting merchants adversely [7][8]. Group 4: Legal and Regulatory Considerations - Experts suggest that Ctrip's practices may constitute an abuse of market dominance, potentially violating antitrust laws, although the online travel sector has not yet been a primary focus of regulatory scrutiny [8][9]. - The lack of significant judicial precedents in the online travel industry means that merchants may need to actively gather evidence and advocate for regulatory attention to address these issues [8][9].