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Hotels in Cyprus are among more than 10,000 across Europe taking part in a class-action lawsuit accusing Booking.com of abusing its market power for two decades. The case, led by the Association of Hotels, Restaurants and Cafes in Europe (Hotrec) and joined by the Cyprus Hotel Association (PASYXE) and more than 25 other national hotel groups, claims the travel giant used restrictive “best price” clauses to block hotels from offering cheaper rates anywhere else, not even on their own websites.
Hotrec says the practice stifled competition, hurt revenues, and left hotels dependent on a platform that last year controlled 71% of Europe’s online booking market. Booking.com argues the clauses encouraged competitive pricing and helped boost occupancy.
The legal fight, to be heard in Amsterdam, comes after a 2024 European Court of Justice ruling that found such clauses fall under EU competition law. If successful, it could result in one of the largest payouts in European hospitality history, covering alleged damages from 2004 until early 2024, when Booking.com dropped the policy to comply with new EU rules.
For Cyprus, the stakes are high. The island’s tourism industry is a pillar of the economy, and many hotels, especially smaller, family-run properties, say high commissions have squeezed profit margins, with some keeping just €75 from a €100 room rate after fees. A successful lawsuit could not only mean compensation for past losses but also a more level playing field, giving hotels more freedom to offer direct discounts to guests and potentially boosting local tourism competitiveness.
While cutting ties with Booking.com isn’t realistic for most properties, PASYXE says the case is about setting fairer rules for the future.
*With information from The Guardian
