Lodging establishments express concerns over Booking.com's business strategies
In a significant move, more than 10,000 European hotels have initiated a class-action lawsuit against Booking.com over the use of "best price" (parity) clauses. These clauses, which have been in use since Booking.com's entry into the market nearly 20 years ago, prohibited hotels from offering cheaper rates on other platforms or their own websites.
The lawsuit, organised by the Association of Hotels, Restaurants and Cafes in Europe (HOTREC) and supported by over 30 national hotel associations across Europe, including those from Ireland, Germany, and Italy, alleges that these clauses distorted the market and caused financial harm for around two decades.
The "best price clauses" effectively restricted competition and prevented customers from booking directly with hotels rather than through Booking.com. After a 2024 ruling by the European Court of Justice that deemed these clauses illegal, and with enforcement of the EU’s Digital Markets Act (DMA) 2024, Booking.com removed these clauses within the European Economic Area.
The lawsuit, being heard in the Netherlands where Booking.com is headquartered, is expected to be lengthy and complex, particularly in determining the quantification of damages caused by these clauses. The hotel industry’s position is that Booking.com unfairly leveraged its dominant market position to impose these clauses, creating a "winner takes all" dynamic within the digital accommodation sector.
As of early August 2025, HOTREC recently extended the deadline for hotels to join the lawsuit until August 29 due to high demand, indicating strong and growing participation among European hotels. Booking.com, however, has stated it has not yet received an official lawsuit and disputes the allegations and legal interpretations, asserting that its partners are free to set their distribution strategies as they choose.
The German hotel market, unique with business trips making up 50% of bookings, significantly more than in other European countries, has not yet returned to pre-crisis levels after the pandemic. More and more hotel rooms are being added, but the number of hotels is decreasing, with smaller, medium-sized hotels being displaced by larger ones, often hotel chains.
The trend is towards digital bookings, with Booking.com dominating over 70% of the 30% of hotel revenues coming from bookings through portals. The industry is discussing the impact of artificial intelligence on booking portals, with a focus on adapting hotel websites for visibility.
Markus Luthe, CEO of the German Hotel Association, is discussing the allegations against Booking.com. It remains to be seen how this case will unfold, but one thing is certain: the outcome will depend on the Amsterdam court’s ruling and likely subsequent appeals.
References: 1. Hotelier Middle East 2. Reuters 3. Tnooz 4. Hotel Management
- The hotel industry, affected by the financial harm caused by the "best price" clauses for around two decades, is now seeking vocational training and employment opportunities to adapt their businesses to the digital era, aiming to regain control over their pricing strategies.
- With the travel sector rapidly evolving, the lifestyle of hotel owners and employees may undergo significant changes due to the outcome of the ongoing class-action lawsuit against Booking.com, potentially leading to increased competition and financial stability for community-based establishments.
