The exchanges may constitute unfair trading, the FTC said, and risk violating rules that cover cartel-like behavior.New Otani, have been sharing rates information in a potential breach of anti-monopoly rules, the country’s antitrust watchdog said in a warning.
Fifteen major operators were hit with the notice by Japan’s Fair Trade Commission on Thursday, saying the companies shared commercially-sensitive information like price-setting policies, revenue per room, and projected occupancy rates. The exchanges may constitute unfair trading, the FTC said, and risk violating rules that cover cartel-like behavior.
The warning comes as Japan’s hotel rates climb amid a record-high tourism boom, fueled by a weak yen. Nearly 37 million overseas tourists visited the country in 2024, outstripping an earlier pre-pandemic peak.
But those tourists face steeper hotel costs: The average daily rate in 2024 was ¥18,368 (about $126), a 25% jump from the pre-pandemic tourism boom of 2019, according to data provider CoStar Group. While last year’s room occupancy rate remained lower, it includes the flood of hotel supply built around Tokyo’s Olympics.
The Imperial Hotel takes the warning seriously and will work to regain trust, a spokesperson told Bloomberg News by phone. The stately hotel is synonymous with Japanese hospitality, opened in 1890 and known for hosting iconic figures such as Marilyn Monroe and Charlie Chaplin. The information-sharing arose from a “lack of awareness” and didn’t affect pricing, the spokesperson said.
A spokesperson for the Okura Tokyo, a five-star establishment in the upscale business district of Toranomon, denied any intention to form a cartel. The company also says it will cease any information exchanges.
By Eddy Duan and Maho Nambu
