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12° Nicosia,
26 November, 2024
 

Greek hoteliers sue booking.com over equal pricing rules

Hoteliers claim Booking.com's rules hurt their business, and they're seeking millions in damages.

Kathimerini Greece Newsroom

By Ilias Belos

Greek hoteliers, led by the Hellenic Chamber of Hotels (HCH), are preparing to take legal action against Booking.com, claiming damages that could total tens of millions of euros.

This follows a European Court of Justice (ECJ) decision (case C-264/23) that ruled Booking.com’s “rate parity clauses” – which prevent hoteliers from offering lower prices on their websites than on the platform – are not essential for the platform’s financial viability.

The legal challenge stems from widespread dissatisfaction among Greek hoteliers regarding Booking.com’s commission rates, which range from 15% to 27%, often increasing for participants in promotional campaigns. These fees significantly affect hotel profitability, especially as Booking.com holds approximately 70% of the online booking market in Greece. The platform is estimated to generate €200 million annually in commissions from Greek properties, out of €2 billion in online bookings.

Alexandros Vassilikos, president of both HCH and HOTREC, the European trade association for hotels, restaurants and cafes, announced that HCH has engaged a specialized law firm to evaluate collective claims for compensation.

Τhe Hellenic Hoteliers Association, under the leadership of Yannis Hatzis, has expressed its full support for HCH’s initiative. Chatzis described the ECJ ruling as a confirmation of the financial harm caused to European hotels by Booking.com’s practices and criticized the platform’s slow compliance with the court’s directives to remove parity clauses.

The exact number of Greek hotels likely to join the lawsuit is under evaluation, with significant interest already reported. A successful claim could set a precedent for similar actions across Europe.

Booking.com’s rate parity clauses have long been a point of contention. Hoteliers argue that such restrictions undermine their ability to compete effectively and manage unsold inventory. Meanwhile, Booking.com maintains that the clauses protect consumer confidence in its platform.

The ECJ’s ruling is part of a broader push within the EU to address anti-competitive practices among large digital platforms. Greek hoteliers hope their lawsuit will not only deliver compensation but also encourage fairer practices in the online booking market, ultimately benefiting both the industry and consumers.

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Cyprus  |  business  |  travel

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