Hotels Sue Booking.com: Europe’s Legal Uprising

Thousands Unite Against Booking.com’s Pricing Practices

In a move that’s shaking up the European travel industry, over ten thousand hotels are banding together for a massive class-action lawsuit against Booking.com. This isn’t just a small protest; it’s a continent-wide legal challenge representing a significant collective effort by the hospitality sector to tackle what they see as unfair practices that have been going on for years. The sheer number of hotels involved really shows just how widespread the dissatisfaction is, and it’s shaping up to be one of the biggest legal battles of its kind against an online travel agent in Europe’s history.

The Core of the Complaint: ‘Best Price’ Clauses

So, what’s the big deal? It all comes down to Booking.com’s old “best price” or “parity” clauses. For about twenty years, these contract terms basically forced hotels to offer their lowest room rates on Booking.com. This meant hotels couldn’t offer better deals on their own websites or through other channels, which many felt was really limiting their ability to compete and hurting their profits. It’s like they were being told they couldn’t offer a discount to their loyal customers directly, which doesn’t seem fair, right?

Eroding Autonomy and Profit Margins

Hoteliers argue that these clauses really put a damper on their independence. By making sure prices were the same everywhere, Booking.com is accused of squeezing hotel profit margins and taking away their control over how they do business. It feels like the power balance has shifted way too much towards the big online platform, leaving individual hotel owners struggling to keep up.

The ‘Free-Rider’ Issue

There’s also this “free-rider” concern. The hotel industry claims that Booking.com used these clauses to stop customers from finding a hotel on their site and then booking directly with the hotel to save on fees. It’s understandable why hotels would want to encourage direct bookings, especially when they’re paying hefty commissions.

Legal Backing: ECJ Ruling and Spanish Fines

Things really started heating up after a big ruling by the European Court of Justice (ECJ) in September 2024. The ECJ decided that Booking.com’s parity clauses were actually against EU competition law. This was a huge win for the hotels, giving them solid legal ground to stand on. Plus, Spain’s competition authority hit Booking.com with a massive €413 million fine in 2024 for abusing its market position with these restrictive terms.

The EU Digital Markets Act’s Role

The EU’s Digital Markets Act (DMA), which came into effect in 2024, also played a key part. After the ECJ ruling and the DMA, Booking.com finally got rid of its rate parity clauses across the European Economic Area. However, the hotels’ lawsuit is seeking compensation for all the years these clauses were in place, from 2004 to 2024.

Hotel Associations Leading the Charge

The Association of Hotels, Restaurants and Cafes in Europe (HOTREC) is at the forefront of this legal action. They’re representing the industry’s unified front against what they call “abusive practices in the digital market.” It’s great to see so many national hotel associations, over 30 of them from more than 25 countries, backing this cause. It really shows a strong agreement within the European hotel industry that something needs to be done.

Coordinating the Claims

Managing all these claims is the Stichting Hotel Claims Alliance. They’re working hard to bring all the cases together and present a united front in court, mainly in Amsterdam, where Booking.com is based. It’s a complex process, but crucial for making sure every hotel gets a fair hearing.

Seeking Billions in Damages

The main goal here is to get compensation for the financial losses hotels have suffered over the past two decades due to Booking.com’s practices. Industry experts estimate that hotels might have overpaid Booking.com billions of euros in commissions. That’s a staggering amount, reflecting the impact of what they believe were inflated commission rates and unfair pricing policies.

Deadline Extension

There’s been a lot of interest in joining the lawsuit, so the deadline for hotels to register has been extended. It was moved from July 31, 2025, to August 29, 2025, to give more hotels a chance to participate.

Booking.com’s Defense

Booking.com, on the other hand, has dismissed the allegations, calling them a “misinterpretation of previous rulings” and saying claims of inflated prices are “nonsense.” They maintain that hotels are free to set their own prices. A spokesperson highlighted the value Booking.com provides by connecting hotels with a global customer base, something that would be hard and expensive for many independent hotels to achieve on their own. They also state they’re fully compliant with European law, pointing to the removal of rate parity clauses as proof.

Broader Market Context and Consumer Claims

It’s worth noting that Booking Holdings, Booking.com’s parent company, had a massive market share in Europe in 2023, controlling about 71% of the online hotel booking market. This dominance is a key factor in the legal challenges. Interestingly, consumer groups in the Netherlands have also filed lawsuits, alleging that Booking.com has charged excessive hotel prices, leading to hundreds of millions in consumer damages since 2013. The company has also faced other regulatory scrutiny, including a hefty fine from Spanish regulators and past accusations related to other business practices.

This whole situation is a really big deal for the future of online travel agencies. It raises important questions about how these platforms operate, market fairness, and the need for a level playing field in the digital economy. The outcome could really change how OTAs and hotels work together across Europe and maybe even beyond.

It’s a developing story, and it’s definitely one to keep an eye on as these legal proceedings unfold and potentially reshape the travel and hospitality industry.