10,000+ Hotels Sue Booking.com Over Pricing

In a massive legal showdown, over ten thousand hotels across Europe are banding together to sue Booking.com. They’re accusing the online travel giant of unfair competition, claiming its long-standing “best price” rules have cost them millions for two decades. This isn’t just a small group; it’s a huge, coordinated effort by hotel associations, showing just how fed up many businesses are with the current digital marketplace.

The Heart of the Dispute: Price Parity Clauses

So, what’s the big deal? It all comes down to something called “best price” or “parity” clauses. Basically, Booking.com used to make hotels promise to offer the lowest prices on their site compared to anywhere else. Hotels say this stopped them from offering better deals on their own websites or through other channels. This practice, which ran from 2004 to 2024, is accused of stifling competition, hurting direct bookings, and allowing Booking.com to charge higher commissions. The Association of Hotels, Restaurants and Cafes in Europe (Hotrec) reckons these clauses have caused “substantial financial harm” to hotels all over the continent.

A Key Court Ruling

Things really heated up in September 2024 when the European Court of Justice (ECJ) made a ruling. They said that these kinds of parity clauses *could* actually break EU competition law. Booking.com, however, argues that the ruling wasn’t a blanket ban, but rather that each case needs to be looked at individually. Still, the hotel groups see this judgment as a major win and a solid foundation for their lawsuit.

The Sheer Scale of the Lawsuit

This legal action is one of the biggest collective lawsuits the European hospitality sector has ever seen. More than 10,000 hotels from about 30 countries are involved. The deadline to join was recently extended to August 29, 2025, because so many hotels wanted in. The whole thing is being managed by the Stichting Hotel Claims Alliance and will be heard in the Netherlands, where Booking.com is based.

The Financial Blow to Hotels

The hotels suing Booking.com are looking for compensation for what they call “inflated costs” and financial losses over the last twenty years. They claim the parity clauses led to commission rates that were way too high – often between 12% and 25%. Imagine a €100 room booking; after Booking.com’s cut, a hotel might only be left with €75. That’s a tough margin to work with, especially for smaller, independent hotels.

Losing Control and Direct Bookings

It’s not just about the money, though. These parity clauses also chipped away at hotels’ ability to compete freely. By forcing them to keep prices high on Booking.com, it made it harder for hotels to encourage people to book directly. Direct bookings are super important for hotels; they allow for better customer relationships and higher profits per booking. The clauses were also meant to stop customers from finding a hotel on Booking.com and then booking directly to avoid the commission.

Market Dominance and Power Imbalance

The lawsuit also shines a light on just how much power Booking.com has. Reports show that Booking Holdings controlled about 71% of the European online booking market in 2023. That’s a huge chunk! Critics argue this dominance lets Booking.com dictate terms, creating a situation where many smaller hotels feel they have no choice but to rely on the platform for international exposure.

Booking.com’s Response

Booking.com maintains that it’s playing by European rules and that its platform offers real value to hotels by connecting them with travelers worldwide. They point out that they did remove all parity clauses for European properties in 2024, in line with the EU’s Digital Markets Act. They also dispute the hotel groups’ interpretation of the ECJ ruling, insisting the court didn’t find their clauses anti-competitive but rather that they need case-by-case review. Booking.com even claims that internal surveys show most hoteliers feel the platform helps them with bookings and lowers customer acquisition costs.

Pushing Back Against Legal Claims

The company has rejected the hotels’ legal arguments, calling them “incorrect and misleading.” Booking.com asserts that hotels are free to set their own prices and distribution strategies. They also mentioned that they hadn’t formally received notice of a class-action lawsuit, characterizing the industry’s statements as coming from HOTREC, not from a filed legal action.

The Bigger Picture for Hotels

This lawsuit comes at a time when hotels are already trying to change how they reach customers. Many are looking to diversify their booking channels, rely less on Online Travel Agencies (OTAs), and boost direct bookings to improve profits and build stronger customer relationships. Things like AI, personalized marketing, and metasearch engines are playing a big role in this shift.

Increased Scrutiny of Digital Platforms

The action against Booking.com is part of a larger trend of increased regulatory oversight for big digital platforms in Europe. The EU’s Digital Markets Act (DMA) is designed to promote competition and protect consumers by labeling major tech companies as “gatekeepers.” Booking Holdings was identified as one of these gatekeepers, meaning they have to follow specific DMA rules. This environment suggests we might see stricter rules for platform practices across many industries.

What This Means for the Future

Legal experts believe that no matter how this lawsuit turns out, the ongoing attention from regulators and courts will likely push platforms like Booking.com to change how they work with their partners. The industry is increasingly focused on strengthening direct booking channels, rewarding customer loyalty, and getting more control over guest relationships. If this collective action is successful, it could set a precedent for future challenges against dominant online players in travel and other sectors.

It’s worth noting that similar legal actions and regulatory moves against price parity clauses have happened in other European countries before this big lawsuit. For example, Germany banned these clauses, and countries like Italy, France, Austria, and Belgium have similar laws. Even a Spanish court previously fined Booking.com over similar issues. These past events show a long-standing concern among European authorities and hoteliers about how these clauses affect market competition and hotel profits.

Hotrec, representing hotels, restaurants, and cafes in the EU, has been key in organizing this Europe-wide effort. The strong support from over 30 national hotel associations highlights the widespread dissatisfaction with Booking.com’s practices. This united front aims to make hoteliers’ voices heard and push for a fairer digital marketplace. You can learn more about Hotrec’s work here.

Booking Holdings’ massive market share in Europe, around 71% in 2023, really shows the influence the company has. This dominance is a major reason why hotels are taking collective legal action, as many feel they don’t have many other options to reach a global audience. This lawsuit aims to level the playing field and create a more competitive environment. For more on the hotel distribution landscape, check out this article.

The ongoing legal battle will likely speed up the trend of hotels diversifying their booking channels and focusing more on direct bookings. Hotels are exploring options like metasearch engines, social media marketing, and AI tools to reduce their reliance on big OTAs and regain control over customer relationships and revenue. The outcome of this lawsuit could really shape how online travel distribution looks in the future. Discover more about direct booking strategies here.

While the lawsuit is mainly about hotels seeking compensation, it also affects consumers. The “best price” clauses, by limiting price differences across platforms, could potentially reduce consumer choice and make it harder to see the real value of different booking channels. A more competitive market, as the hotels are pushing for, could lead to more transparency and maybe even better deals for travelers down the line.

The decision to extend the registration deadline for hotels to join the lawsuit until August 29, 2025, shows just how much interest there is from the industry. This extension gives more hotels a chance to participate, strengthening the collective voice and the potential impact of the legal action. The fact that this is happening even during peak season highlights how urgent hoteliers feel about addressing these long-standing issues. Learn about the impact of OTAs on hotels in this related post.

This lawsuit is expected to be a complex and potentially long legal process. Legal analysts suggest that even if Booking.com wins, the intense regulatory and legal scrutiny might still lead to changes in the company’s practices. The hotels are seeking damages for losses incurred over two decades, which, if successful, could mean substantial financial compensation for thousands of businesses across Europe. You can find more information on competition law in the EU here.

The sentiment from Hotrec president Alexandros Vassilikos – that “abusive practices in the digital marketplace will not go unchallenged” – perfectly captures the reason behind this collective action. This lawsuit is a determined effort by the European hotel industry to fight back against what they see as unfair terms imposed by dominant online platforms, signaling a demand for more fairness and balance in the digital economy. Explore the future of travel technology here.

Here’s a video explaining the situation:

And another perspective on the hotel industry’s challenges: