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Hoteliers across Europe are once again taking aim at Booking.com, accusing the popular online platform of exploiting its dominant position in the market. Despite a ruling from the European Court of Justice aimed at curbing the platform’s power, hoteliers claim Booking.com continues to impose unfair practices that hurt their businesses.
Legal firms representing hotel owners are gearing up to file class-action lawsuits in several EU countries, seeking compensation for the damages caused by these practices. The issue is expected to dominate discussions at the 90th general assembly of the Association of Hotels, Restaurants & Cafes in Europe (HOTREC), which began on Monday and will run until Wednesday in Oslo.
At the heart of the dispute is Booking.com’s commission fees, which can reach as high as 15% or more for each reservation made through the platform. Hoteliers argue that these hefty fees, combined with the platform’s control over pricing, leave them with little room to offer better deals directly to customers.
Essentially, hotel owners believe they could provide lower prices or special discounts to guests if not for the commission charges. By cutting out Booking.com and other similar platforms, hoteliers could potentially offer more competitive rates, benefiting both their businesses and their customers. The stakes are high, with some estimates suggesting the financial impact could run into billions of euros across the industry.
The rise of digital transformation in the hotel sector has allowed many businesses to establish their own private booking systems, making them less reliant on third-party platforms. In fact, the latest data shows a significant jump in direct bookings in Greece for Easter 2024, with an increase of 18.3% compared to the previous year, according to digital marketing firm Nelios. Despite this shift, only 33% of Europe’s hotel revenue from online bookings in 2024 came from direct channels, with the majority still routed through platforms like Booking.com and Expedia, as reported by D-Edge.
Another major concern is the "parity clause" that Booking.com enforced until last year, which prevented hoteliers from offering lower prices on their own websites than those listed on the platform. This clause, according to critics, stifled competition and prevented hoteliers from freely managing their pricing strategies.
