European Hotels Launch Class Action Against Booking.com Over Pricing Practices
More than 10,000 hotels across Europe have joined a class action lawsuit against the online travel platform Booking.com, seeking damages for losses allegedly caused by restrictive pricing policies.
The legal action, spearheaded by the Hotel Claims Alliance and supported by HOTREC — the umbrella organization representing hotels, restaurants, and cafes in the EU — aims to recover damages for the period between 2004 and 2024. The lawsuit targets Booking.com’s use of “best-price” clauses, which prevented hotels from offering lower rates on their own websites or other platforms.
These clauses, also known as parity clauses, were designed to prevent what Booking.com described as “free-rider” bookings — when customers discover a hotel on Booking.com but then book directly with the hotel to avoid platform fees.
The initiative has garnered support from 30 national hotel associations, including the German Hotel Association (IHA). According to HOTREC, the widespread use of these clauses placed hotels at a disadvantage, limiting their ability to compete and increasing their reliance on the platform.
Legal Grounds for the Lawsuit
The lawsuit, to be filed in an Amsterdam court, is based on a ruling by the European Court of Justice (ECJ) on September 19, 2024. The court found that best-price clauses were illegal and that online platforms could operate without imposing such restrictions on their partners.
In response to the EU’s Digital Markets Act, Booking.com removed the clauses earlier in 2024. However, hotel groups argue that the damage had already been done over the previous two decades.
“European hoteliers have long suffered from unfair conditions and excessive costs,” said HOTREC President Alexandros Vassilikos. “This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe.”
HOTREC has extended the deadline for hotels to join the lawsuit until August 29, citing strong interest and growing support.
Booking.com Responds
In a statement to Germany’s DPA news agency, Booking.com said it had not yet received an official lawsuit and characterized the announcement as a statement from HOTREC rather than a formal legal filing.
The company also rejected the claims made by the hotel associations and disputed the legal interpretation of the ECJ ruling.
“Each of our accommodation partners is free to set their own distribution and pricing strategies and can offer their rooms wherever they choose,” Booking.com said.
The case could have significant implications for the future of online travel platforms and their relationships with hotel partners across Europe.
Edited by: Wesley Rahn
Source: dw.com