For the tourism industry, the past week has been an unforgettable one. It began with the State Administration for Market Regulation carrying out administrative guidance sessions for platforms including Meituan, Douyin, JD.com, Ctrip, Tongcheng, and Fliggy. Shortly thereafter, the Beijing Municipal Market Regulation Bureau launched investigations into Fliggy, Tongcheng, Tujia, and Meituan over suspected violations of relevant laws and regulations. These actions point squarely at a systematic overhaul of deep-rooted problems within the online hotel booking sector.

The response from the China Hotel Association has highlighted the industry's core pain points: currently, some platforms, leveraging their advantages in traffic and algorithms, employ tactics such as exorbitant commissions, forced exclusivity agreements, opaque data practices, and low-price baiting to inflate hidden costs. These measures disrupt the competitive order, damage business interests, and constrain the upgrade of service quality.

Summing up the issues, they boil down to two primary concerns. First, there is a destructive low-price race that undermines the market's competitive framework. Second, there are unseemly profit-grabbing practices that harm both the merchants operating on these platforms and the consumers themselves. Ultimately, all of these problems land squarely on the shoulders of hotels.

The hotel industry is facing a tough year, with the sector's RevPAR (revenue per available room) under sustained pressure nationwide. According to the China Accommodation Industry Consumption Index Report released by the China Hotel Association, the average room rate index in July fell by 5.9% year-on-year, while the occupancy rate index dropped by 1.3% during the same period. In a bid to stay afloat, many hotels have resorted to cutting prices. For example, some Huazhu Hotels Group outlets in Jiangsu, Zhejiang, Shanghai, and Anhui have been offering two nights for 248 yuan. The Hangzhou Wyndham Hotel West Lake Huanglong Center has advertised two nights for 398 yuan, complete with breakfast for two. Anji Pularna Resort has rolled out a family suite package at 899 yuan for two nights, which also includes four breakfasts, hot spring access, and camp activities.

The timing of this concerted regulatory pressure on online booking platforms also reflects an intention to give hotels a helping hand. Looking at Ctrip, which has already gone through the process of investigation and rectification, one can more clearly see the effects this campaign aims to achieve. The most notable changes are the scrapping of exclusive cooperation agreements, reduced commission rates, and adjustments to platform rules. Previously, commission rates for special brand merchants typically ranged from 15% to 20%, meaning that for every 100 yuan a hotel sold, at least 15 yuan went to the platform. Following the rectification, commission rates have generally been reduced to around 10%. Calculated at the 10% rate, for every 100 yuan paid by the consumer, the hotel gets to keep an additional 5 to 10 yuan in its pocket. If a hotel wants to attract more guests, it can lower its price to 95 yuan while still maintaining its previous income, and the consumer also saves 5 yuan in the process.

A 5-percentage-point reduction in commissions may look like a concession by the platforms, but it is, in reality, a transfer of power back to the merchants. From this perspective, the goal of this new round of rectification is not simply to fine a few platforms. Instead, it marks a shift from punishing individual cases to promoting industry-wide reform. The objective is to constrain the platforms' unilateral power to set the rules, push commission rates down, and hand the pricing power back to hotels. Otherwise, if only Ctrip changes its ways while other platforms continue to enforce exclusive partnerships, mandate minimum prices, and charge high commissions, the competitive environment facing hotels will not see any fundamental improvement.

The dilemma currently confronting the hotel industry is one that the restaurant sector has already weathered. Last year, a platform-launched food delivery war dragged the entire industry into a price war. However, through sustained regulatory efforts, the momentum of low-price competition in the restaurant industry has largely been curbed. According to the China Catering Industry Consumption Index released by the China Hotel Association, the average spending per customer index in July 2026 increased slightly by 0.1% month-on-month and rose 9% year-on-year. This indicates that the industry's efforts to govern the price war have continued to yield results, with the pricing structure now trending toward stability.

The restaurant industry's experience shows that only by correcting the competitive rules can the pricing system be gradually restored. When merchants enjoy a reasonable profit margin, they gain the motivation to enhance service quality. Of course, revising the rules cannot solve every problem, but it can at least give hotels some breathing room. Prices should be determined by service quality and market forces, not dictated by platform rules. Platforms should not resort to coercive dealings with merchants, and merchants should be honest and upfront with consumers. Only then can we achieve a healthy platform ecosystem.