Ctrip fined for monopolistic practices in hotel booking market
China's market regulator imposed a combined fine and forfeit of 5.179 billion yuan on Ctrip Group Limited for abusing its dominant position in online hotel booking through exclusive cooperation requirements and forced 'lowest price' policies enforced via platform algorithms and technical controls. The regulator found these practices restricted fair competition and harmed hotel operators and consumers.
What happened
China's State Administration for Market Regulation found that Ctrip Group Limited abused its dominant position in the online hotel booking platform market through a traffic allocation mechanism using platform rules and technical means. The regulator identified two monopolistic practices: requiring certain hotels to enter exclusive cooperation agreements, and forcing hotels to offer 'lowest prices across the entire web', which restricted fair market competition and limited hotels' cross-platform operations.
The investigation began in January 2026 following complaints received since 2025 that Ctrip forced hotels to accept exclusive deals, used technical methods to control prices, and caused hotel industry profits to decline.
Reported impact
The practices harmed hotel operators by restricting their independent pricing rights and cross-platform business operations, and damaged consumer interests and industry healthy development.
Index analysis
The regulator's investigation examined the company's use of algorithms and technical means to control pricing behavior on its platform.
Governance controls
Ctrip was ordered to refund 122 million yuan in withheld deposits to hotel operators, and required to implement full remediation and publicly disclose corrective measures. The company published nineteen remedial measures in five categories.
Ctrip stated it would reject 'inward-curling' low-efficiency competition, strengthen compliance operations, perfect platform governance, and establish long-term governance mechanisms.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.