Azernews.Az

By Alimat Aliyeva

Booking.com, the world’s leading online travel platform, is currently facing one of the largest class-action lawsuits in the history of the tourism industry, Azernews reports.

More than 10,000 hotels across various European countries have joined forces to file a lawsuit against Booking.com. These hotel representatives are seeking compensation for what they describe as unfair terms and excessive commission fees imposed over the past 20 years. The dispute centers on a landmark decision made by the European Court of Justice in the fall of 2024. The court ruled that Booking.com’s “best price” clauses—which prevented hotels from offering lower rates on their own websites or through other channels—violated European competition laws. These restrictions severely limited hotels’ freedom to set their own prices and led to a significant decline in direct bookings. The plaintiffs claim that between 2004 and 2024, they incurred financial losses amounting to millions of euros due to these practices.

The ongoing class-action lawsuit is being handled in the Netherlands, where Booking.com is registered, and is coordinated by the Hotel Claims Review Alliance. The lawsuit is supported by HOTREC, the European association representing hotels, restaurants, and cafés, as well as over 30 national hotel associations, including the German Hotel Association (IHA). To accommodate more participants, HOTREC has extended the deadline for hotels wishing to join the lawsuit until August 29.

Despite this legal challenge, Booking.com remains a crucial sales channel for many hotels, helping them reach millions of travelers worldwide. According to recent studies, Booking Holdings, the parent company of Booking.com, held a dominant market share of 71% in Europe and 72.3% in Germany in 2023. Meanwhile, the share of direct bookings in Germany declined by 8% during the same period, further increasing hotels' reliance on online travel agencies.

It’s worth noting that while platforms like Booking.com have revolutionized the global travel industry by offering unprecedented reach and convenience, some industry experts argue that the golden age of such platforms may be nearing its end. With growing calls for fairer pricing practices and the rising popularity of direct booking incentives, the travel landscape is poised for significant change.