ROME: More than 10,000 European hotels are joining collective legal action against Amsterdam-based Booking.com to seek compensation for losses caused by the online travel agency's use of so-called "best price" clauses.
According to reports, the best price clauses could be in violation of antitrust law, but a court in Amsterdam must ultimately resolve the case. These clauses had prevented hotels from offering their rooms at a lower price outside the platform, such as on their own website. The aim is to prevent so-called "free-rider" bookings where customers find the hotel on Booking.com and then go to the hotel's own website to make their booking.
The hotels cite a ruling by the European Court of Justice dated September 19, 2024 that essentially states that the best-price clause is illegal.
The court found that platforms like Booking.com could operate without rules of this kind. This made little difference to travellers. Booking.com had abolished the clauses in Europe following the European Union's Digital Markets Act of 2024.
"European hoteliers have long suffered from unfair conditions and excessive costs. Now is the time to stand together and demand redress," Alexandros Vassilikos, president of the HOTREC hospitality sector association, said.
"This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe," he added.
The aim of the collective action, known as a class action lawsuit, is to secure compensation for damages incurred between 2004 and 2024.
The action, which is being supported by HOTREC and more than 30 national hotel associations, will be heard by a Dutch court and coordinated by the Hotel Claims Alliance.
Despite the criticism, Booking.com is essential for many hotels, as it allows them to reach a large customer base.
According to a study conducted by HOTREC and a Swiss hoteliers' college, Booking Holdings held a market share of 71% across Europe in 2023, while the share of direct bookings has declined considerably over recent years. – dpa
