Stunning Prices and Reservation Obligations: Hotel Industry Practices Before Paris Olympic Games
By Lise Roos-Weil, Edited by Camille Laurent
Published on 12/26/2023 2:11 p.m. | Reading time: 2 min
Prices for hotel rooms in Paris are set to nearly triple during the Paris 2024 Olympic Games next summer, according to a study conducted by UFC-Que Choisir. The consumer association analyzed 80 randomly selected hotels in Paris and compared the prices two weeks before the Olympics with the prices charged on the day of the opening ceremony, Friday, July 26, 2024. The study also revealed that 30% of hotels do not allow bookings for a single night, requiring guests to reserve a minimum number of nights. The legality of these practices is now being questioned.
1. Can hotels legally increase prices?
According to the Commercial Code, hotels have the freedom to set their own prices for rooms. However, they are obligated to clearly display the current prices both inside and outside their establishments. This allows customers to compare the price they paid at the time of booking with the displayed price. Additionally, hotels often require an advance deposit during the booking process, but there is no legal maximum percentage for this deposit. Each hotel determines the amount and includes it in their general conditions of sale.
2. Can hotels impose a minimum number of nights?
Article L122 paragraph 1 of the Consumer Code prohibits the sale of a product or service from being conditional on the purchase of another product or service. While this rule could potentially apply to hotels, they do not explicitly impose any conditions on customers. Instead, hoteliers block rooms for consecutive nights and claim to be fully booked when customers attempt to book for just one night. Although this practice is not strictly illegal, it is commonly applied. However, it is illegal to require customers to pay for breakfast in order to reserve a room, as this would be considered subordinate selling.
3. How are these practices monitored?
The General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF) is responsible for monitoring these practices. Their role is to ensure consumer protection and maintain fair competition. As the Olympic Games approach, the DGCCRF plans to double their inspections, with up to 10,000 establishments being inspected in 2024. Last year, over 1,700 companies were inspected, and 70% of establishments were found guilty of at least one anomaly. Common violations include failure to display prices, failure to provide detailed invoices, and failure to include mandatory information in the conditions of sale. If you encounter any issues, you can report them on the Signal Conso website.