Thousands of hotels unite in protest against Booking.com
The European hospitality industry has taken a significant step forward in challenging the dominance of online travel giant Booking.com. Over 10,000 hotels across the continent have joined forces in a class action suit, coordinated by the Association of Hotels, Restaurants, and Cafes in Europe (HOTREC) and national associations like the German Hotel Association (IHA).
The basis of the lawsuit, as ruled by the European Court of Justice (ECJ) on September 19, 2024, is that Booking.com's "best price" clauses are unlawful. These clauses prevented hotels from offering lower room rates on their own websites or other platforms, effectively restricting price competition. The ECJ concluded that online platforms like Booking.com can operate without imposing such restrictions on their partner hotels.
The plaintiffs claim financial losses spanning from 2004 to 2024, seeking compensation for the imposed limitations on their pricing freedom caused by these clauses. According to HOTREC President Alexandros Vassilikos, European hoteliers have long suffered from unfair conditions and excessive costs. IHA Managing Director Markus Luthe stated that the class action is receiving overwhelming support.
In response to the suit, Booking.com has rejected the claims and legal arguments based on the ECJ ruling. The company removed the "best price" stipulation in 2024 due to the European Union Digital Markets Act. Booking.com allows its partners to offer their rooms wherever they choose, with each accommodation partner free to set their own distribution and pricing strategies.
The suit will extend beyond the courtroom, as HOTREC has announced an extension of the time limit to join the suit until August 29. This gives more hotels the opportunity to join the class action and seek compensation for the financial harm caused by the "best-price" clauses.
The ECJ ruling empowers hotels to freely set and advertise their prices on any channel without Booking.com’s restrictions, marking a significant victory for the European hospitality industry in its quest for fair competition.
[1] European Court of Justice ruling, September 19, 2024. [3] HOTREC press release, August 1, 2024. [5] IHA press release, July 26, 2024.
- Following the European Court of Justice ruling on September 19, 2024, which declared Booking.com's "best price" clauses unlawful, the finance and business sectors in Europe are closely watching the technology-driven hospitality industry to see how this development may impact prices and competition.
- With the European hospitality industry celebrating a significant victory in the class action suit against Booking.com, published news reports are speculating about potential disruptive trends in technology and finance as a result of the suit, as hotels regain control over their pricing strategies.
